Following a blip above the significant long-term resistance at ₹327, the stock fell 5 per cent on Friday. This fall led to formation of a bearish engulfing candlestick pattern in the weekly chart, indicating a trend reversal. The negative divergence in the weekly indicators also suggests the same.

Moreover, the stock has closed just below its 50-day moving average, showing signs of weakness. Traders with a short-term perspective can initiate short position on rallies with a stop-loss at ₹318.

The targets are ₹300 and ₹290. A strong fall below ₹290 can pull the stock down to ₹270 in the medium term.

Therefore, investors with a medium-term view can consider taking partial profits off the table at this juncture and re-enter at lower levels. Key resistance levels are pegged at ₹320, ₹327 and ₹340.

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