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Breaking a key support at ₹175, the stock of E.I.D-Parry India fell 4.6 per cent on Monday. Investors with a short-term horizon can sell the stock at current levels. After encountering a key resistance at ₹240 last November, the stock has been on a medium-term downtrend. The short-term trend is also down. The stock has decisively breached its 21- and 50-day moving averages and hovers well below these levels. The relative strength index on the daily chart has entered the bearish zone from the neutral region and weekly RSI also features in the bearish zone.
Both the daily and weekly price rate of change indicators hover in the negative terrain, implying selling interest. The short-term outlook is bearish for the stock. It can prolong its downtrend and reach the price target of ₹158.5 and then ₹155.5 in the short term. Traders with a short-term perspective can sell the stock with a stop-loss at ₹169.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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