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We recommend a sell in Jet Airways India from a short-term horizon. It is clearly visible from the charts of Jet Airways that after recording its life low at Rs 308 in early July the stock was on a medium-term uptrend till the September 8 high at Rs 567. On September 17, the stock conclusively penetrated the key support level Rs 500 and the medium-term up trendline by tumbling 9 per cent. Subsequently, the stock continued to decline breaching the 50-day moving average. The daily relative strength index (RSI) is featuring in the bearish zone and the weekly RSI has entered into this zone. Moreover, the daily moving average convergence and divergence has entered the negative territory.

Our short-term forecast for the stock is bearish. We expect the stock’s current downtrend to prolong until it hits our price target of Rs 375 in the upcoming trading sessions. Traders with short-term perspective can sell the stock while maintaining a stop-loss at Rs 440.

Yoganand D.

More Stories on : Stocks | Recommendation | Jet Airways (India) Ltd

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