Investors with a short-term perspective can sell the stock of Indiabulls Real Estate at current levels. After recording a 52-week low of Rs.41 in mid-June, the stock reversed and started to trend upwards. The rally continued until it encountered a key resistance in the Rs.68-70 band in early August.
The stock’s 200-day moving average also acted as a key resistance around this band. Triggered by negative divergence in the daily relative strength index, the stock changed direction and began to decline.
On Thursday the stock tumbled 4.6 per cent, breaking a key support at Rs.64 and the paving way for further declines. The daily RSI has entered the neutral region from the bullish zone and the weekly RSI features is in the neutral region. The daily price rate of change indicator has also entered the negative territory after displaying negative divergence.
The ongoing fall can extend to Rs.59 and Rs.58 in the ensuing sessions. Sell the stock with a stop-loss at Rs.69.00.
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