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We recommend a sell in Rolta India at current market price. The stock had a stellar run since August 17; almost doubling in price from this trough. But there is a conspicuous deceleration in the momentum since the last week of October.

A modified head and shoulder pattern, that is a top reversal pattern, is also evident in the period between the end of October and now. The neckline of the pattern was breached on Thursday, giving the minimum downward target of Rs 570. The momentum indicators are extremely weak and signal the extension of the downtrend in the stock. Rolta India can be sold with a stop loss at Rs 700. We expect the stock to fall to Rs 590 and then to Rs 550 in the near term.

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