Investors with a short-term perspective can consider selling the shares of Bombay Dyeing & Manufacturing Company at current levels.
The stock fell 5.3 per cent on Wednesday. The stock has been falling over the past week in tandem with its downtrend since early January.
Prior to this fall the stock was trading in the Rs.59-69 band during November-December 2015.
The stock made a high of Rs.67.2 on January 6. Since then, it plummeted 23 per cent in just two weeks. This sharp fall has broken the Rs.59-Rs.69 range decisively.
Also, Wednesday’s fall has taken the stock well below a key support at Rs.54. A dip to Rs.48 looks likely. Further break below ₹48 can drag it to Rs.45. Traders with a short-term perspective can go short. Stop-loss can be kept at Rs.54.5 for the target of Rs.47.
The downside pressure will ease only if the fall breaks and the stock sustains above the resistance level of Rs.54.