The Hindu Business Line : Emkay Share & Stock (Rs 227.25): Sell

We recommend a sell in Emkay Share & Stock Brokers from a short-term perspective. From the charts of Emkay Share & Stock Brokers, we see that the stock was on an uptrend from its March 2007 low of Rs 52 to its life high of Rs 400 (touched on January 18). However, the stock reversed direction and commenced to decline, after touching the life high level. This trend reversal has been supported by the bearish divergence in the daily momentum indicator. Since mid Januar y, the stock has been on a downtrend.

During this downtrend, the stock first conclusively penetrated 21-day moving average line and then 50-day moving average line as well as the medium-term up trendline in late January. The stock’s fall continued by decisively breaking the key support level of Rs 250 on February 8. The moving average convergence divergence line has entered the negative territory. The daily momentum indicator is featuring in the bearish region and the weekly momentum indicator is in the neutral region. We are bearish on the stock in the short-term. We expect the stock’s downtrend to continue further to our target level of Rs 180. Investors with short-term perspective can sell or book profit in the stock with stop at Rs 260 levels.

Yoganand D.

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