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We recommend a sell in Alstom Projects from a short-term perspective. From the charts of Alstom Projects we note that the stock has been on long-term downtrend from its January 2008 high of Rs 1,085 level, forming lower peaks and lower troughs since then.

However, recently the stock found support at Rs 310 level and witnessed a minor corrective up move to Rs 450 level.

The twin resistance at this level (a key resistance level and the long-term down trendline) halted the up trend. Subsequently the stock declined sharply by 6 per cent on July 11.

The daily momentum indicator is falling in the neutral region and the weekly indicator is featuring in the bearish zone.

Considering that the long-term down trendline is intact we are bearish on this stock in the short-term. We expect the stock to decline until it hits our price target of Rs 365 in the forthcoming trading sessions.

Traders with short-term perspective can sell the stock while maintaining stop-loss at Rs 426.

Yoganand D.

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