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The stock of Hexaware Technologies has tumbled 5 per cent with above average volume on Thursday, breaching an uptrend as well as a key support level at ₹345. This fall gives traders/investors with a short-term perspective an opportunity to sell the stock at current levels.
After recording a new high of ₹394 on January 24, the stock reversed direction triggered by negative divergence in the daily price rate of change and the weekly relative strength index. Since then, the stock has been in a short-term downtrend. While trending down, the stock breached its 21- and 50-day moving averages and now hovers well below them.
The daily RSI has entered the bearish zone from the neutral region and the weekly RSI has entered the neutral region from the bullish zone. The daily price rate of change indicator also feature in the negative territory implying selling interest.
Short-term outlook is bearish for the stock. It can decline further and reach the price targets of ₹324 and ₹317 in the short term. Sell the stock with a stop-loss at ₹345.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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