• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Brand Quest
• The New Manager
• BL Club
• Smartbuy

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth
• Events 2007

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

We recommend a sell in Sobha Developers from a short-term perspective. It is clearly evident from the charts of Sobha Developers that it has been on a long-term downtrend from its January peak of Rs 1,041, forming lower peaks and lower bottoms. The stock was in a consolidating phase between late August and early September. While consolidating sideways, the stock shaped a symmetrical triangle pattern (continuation pattern). On September 15, the stock tumbled breaking through the triangle pattern. The stock resumed its downtrend and continues to fall. On Monday (September 22), the stock declined 6 per cent, with high volume. The stock is trading well below its 21- and 50-day moving averages. The daily and weekly relative strength indices are featuring in the bearish zone. Moreover, the moving average convergence and divergence is slipping downward in the negative territory. We are bearish on the stock from a short-term perspective. We anticipate the stock’s decline to continue further until it hits our price target of Rs 180 in the approaching trading sessions. Traders with short-term perspective can sell the stock while maintaining a stop-loss at Rs 212.

More Stories on : Stocks | Recommendation

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Copyright © 2008, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line