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Investors with medium-term perspective can consider selling the stock of Sobha Developers. After bottoming in March around Rs 75, the stock was on an intermediate-term uptrend till its October high of Rs 302. However, encountering significant long-term resistance around Rs 300, the stock resumed its long-term downtrend that has been in place since December 2006 high of Rs 1,179. The stock is trading well below its 21- and 50-day moving averages, reinforcing its short-term downtrend. The daily momentum indicators are featuring in the negative territory. Weekly moving average convergence and divergence indicator has signalled sell.

We believe that the stock has the prospect of trending downward and touching Rs 150 in the medium-term, with a possible pause around Rs 180. Investors can sell while maintaining Rs 259 as stop-loss. Short-term traders can sell with a target of Rs 202 and Rs 237 as stop-loss.

— Yoganand D.

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