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Investors with a short-term perspective can consider selling the shares of Bombay Dyeing & Manufacturing Company at current levels. The stock fell 5.3 per cent on Wednesday. The stock has been falling over the past week in tandem with its downtrend since early January.
Prior to this fall the stock was trading in the ₹59-69 band during November-December 2015.
The stock made a high of ₹67.2 on January 6. Since then, it plummeted 23 per cent in just two weeks. This sharp fall has broken the ₹59-₹69 range decisively. Also, Wednesday’s fall has taken the stock well below a key support at ₹54. A dip to ₹48 looks likely. Further break below ₹48 can drag it to ₹45. Traders with a short-term perspective can go short. Stop-loss can be kept at ₹54.5 for the target of ₹47.
The downside pressure will ease only if the fall breaks and the stock sustains above the resistance level of ₹54.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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