The stock of Steel Authority of India tumbled 4 per cent accompanied by above average volume on Thursday, breaching a long-term support at Rs.65. Investors with a short-term perspective can sell the stock at current levels. Since its June 2014 peak of Rs.112, the stock has been on an intermediate-term downtrend. Medium- and short-term trends are also down. The stock, which had found a base at its long-term support zone between Rs.65 and Rs68 in early March 2015 and late May, broke below it in the previous session.
The stock trades well below its 50- and 200-day moving averages. Further, the price rate of change indicator hovers in the negative territory implying selling interest. The short-term forecast for the stock is bearish. It can extend its downtrend in the coming trading sessions and reach the price target of Rs.59.5 and Rs.58.5. Sell the stock while maintaining a stop-loss at Rs.63.5 levels.
No comments:
Post a Comment