Investors with Long Term horizon can buy IL&FS Transportation

The stock of IL&FS Transportation Networks is in a downtrend across all time frames.

Last week, the stock nose-dived more than 10 per cent, conclusively breaking the significant support level of ₹155. Since encountering a resistance at Rs.225 in early March 2015, it has been on a medium-term downtrend. This downtrend accelerated further recently. As there is no immediate key support to provide a base, the stock can extend its decline to Rs.130 levels in the short term.

A further breakthrough of key support at Rs.130 can drag the stock down to Rs.110 and Rs.100 in the medium term. Therefore, you can wait for a while and buy at lower level with a stop-loss at Rs.94. An upward reversal from these support levels can take the stock northwards to Rs.170. Strong rally beyond this level can hit Rs.190 and Rs.225 levels in the long term.