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We recommend a sell in Redington India from a short-term perspective. The charts of Redington India show that it was on a medium-term up-trend from its March 2008 low of Rs 256. However, the stock met with resistance at around Rs 387 in mid-May and reversed direction. This medium-term uptrend appears to have ended as the stock failed to make a higher peak above Rs 387. The daily Relative Strength Index (RSI) has entered the neutral region from the bullish zone and the weekly RSI has begun to fall after nearing 60 level. The stock penetrated the medium-term up trendline on May 23, indicating signs of bearishness. We are bearish on the stock in the short-term. We expect the stock’s down move to continue until it hits our price target of Rs 315 in the forthcoming trading sessions. Traders with short-term perspective can sell the stock while keeping the stop-loss at Rs 365.

Yoganand D.

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