The stock of Tata Motors – DVR tumbled 7 per cent accompanied with an above average volume on Monday. Investors with a short-term perspective can consider selling the stock at current levels.
The stock has been on a long-term downtrend since encountering a key resistance at ₹370 in October 2016. Medium- as well as short-term trends are also down for the stock. Following a corrective rally, the stock met a key resistance at around ₹188 recently and resumed its downtrend.
The stock has breached a key support at ₹175 on Monday and tests a next support at ₹167. The daily relative strength index has entered the bearish zone from the neutral region and the weekly RSI feature in the bearish zone. It can breach the current support and hit the price targets of ₹162 and ₹158.5 in the ensuing trading sessions.
Traders with a near-term view can sell the stock with a stop-loss at ₹172.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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