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Investors with a short-term horizon can consider selling the stock of Fortis Healthcare at current levels. The stock plunged 4.5 per cent on Thursday breaking below a significant long-term support level of ₹200. After taking support at around ₹180 in late March and the stock began to rally. While trending up, in April it breached the key resistance level of ₹200 which later had turned into a key support. However, the stock encountered resistance at ₹230 levels in early May.
After making a new 52-week high of ₹230.9 on May 3, it started falling. Since then, the stock has been on a near-term downtrend. The recent sharp fall has strengthened the downtrend. Moreover, the stock has breached its 21-day moving average and trades well below it. The daily relative strength index is on the brink of entering 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 is featuring in the negative territory implying selling interest.
The near term outlook is bearish for the stock of Fortis Healthcare. It can decline to ₹188.5 and ₹184.5 in the short term. Sell the stock with a stop-loss at ₹201.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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