Jet Airways (₹481.3)

Investors with a short-term perspective can consider selling the stock of Jet Airways (India) at current levels. The stock marked a 52-week high of ₹645 in early August 2017 and started to decline. Since then, the stock has been on a medium-term downtrend. Short-term trend is also down for the stock. While trending down, the stock initially breached its 21- as well 50-day moving averages in September and later breached a key supports at ₹550 and ₹500.

After a corrective rally, the stock has encountered the key resistance at ₹500 and also the 200-day moving average this week. On Wednesday, the stock fell 2 per cent with good volume, resuming from the key resistance level of ₹500. With this fall, the stock is likely to continue its short as well as medium-term downtrend in the ensuing trading sessions. The stock hovers well below its 50 and 200-day moving averages.

The daily relative strength index continues to feature in the bearish zone and the weekly RSI has entered this bearish zone from the neutral region. Both the daily and weekly price rate of change indicators feature in the negative territory implying selling interest. Short-term outlook is bearish for the stock. Targets are ₹462 and ₹452. Traders can sell the stock with a stop-loss at ₹492.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

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