The Hindu Business Line : Indiabulls Financial (Rs 620.55): Sell

We recommend a sell in Indiabulls Financial Services from a short-term perspective. It is evident from the chart of this stock that it has been on a long-term up trend since its July 2006 trough of Rs 90. However, it began to decline after marking its life-high of Rs 1,028 in December 2007. Since then the stock has been on medium-term downtrend. We observe that the down days of the stock’s medium-term downtrend have been supported by good volumes. In late January the stock penetrated the 50-day moving average and recently it broke below the 200-day moving average too. The stock is currently testing the long-term up trendline at around Rs 600 levels. The daily momentum indicator is featuring in the bearish zone. The daily moving average convergence divergence is steadily declining in the negative region. We are bearish on the stock in the short-term. We expect the stock to break through the long-term up trendline and decline further to touch our target price of Rs 510 in the short-term. Investors with a short-term perspective can sell or book profit in the stock with stop loss at Rs 680.

Yoganand D.

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