Sintex Industries (₹104.4)

The stock of Sintex Industries tumbled 7.4 per cent accompanied with extraordinary volume on Tuesday, breaching a key support at ₹110 levels. This gives trader with a short-term perspective an opportunity to sell the stock at current levels. Since taking support at around ₹70 in December 2016, the stock has been on an intermediate-term uptrend. However, the rally encountered a key resistance at ₹121 last week and started to decline. The stock has been on a near-term downtrend since then.

The stock’s recent fall has strengthened its downtrend since it has broken below a key trendline decisively. The daily relative strength index has entered the bearish zone from the neutral region. The daily price rate of change indicator is featuring in the negative territory implying selling interest. The weekly indicators are also showing signs of weakness. The short-term outlook is bearish. The stock can extend its downtrend and reach the price target of ₹100 and ₹98 in the upcoming trading sessions. Traders with a short-term perspective can sell the stock with a stop-loss at ₹107.

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

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