Investors with a short-term horizon can consider selling the stock of JSW Energy. The stock fell 5.5 per cent on Thursday, breaking a key immediate support around Rs.96. After encountering an important resistance at Rs.124 in February and March this year, the stock changed its direction and started declining. The stock has been on a medium-term downtrend since then. Moreover, the short-term trend is also down. The ongoing fall has decisively breached the stock’s 50- and 200-day moving averages at around Rs.100.
The daily as well as weekly price rate of change indicators are hovering in the negative terrain, implying selling interest. As the stock has breached the key immediate support, the downtrend appears to be reinforced. A decline to Rs.89.5 and then to Rs.87.5 is possible in the upcoming sessions. Sell the stock with stop-loss at Rs.95.5.
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