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The stock of IDFC fell 2.2 per cent accompanied by above average volume decisively breaching a key support around ₹166. Investors with a short-term horizon can sell the stock at current levels. After encountering a significant long-term resistance at around ₹183, the stock changed direction in early March. Since then, the stock has been on a short-term downtrend. The negative divergence in the weekly indicators backs the stock’s reversal. It has decisively breached its 21- and 50-day moving averages and hovers well below them. Further, moving average convergence divergence indicator on the daily chart also displays negative divergence and has entered the negative territory.
Both the daily and weekly price rate of change indicators hover in the negative terrain implying selling interest. The stock can extend its decline and hit our price target of ₹155 and ₹152 in the ensuing trading sessions. Traders can sell the stock with a stop-loss at ₹165.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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