The stock of Engineers India fell 2.8 per cent on Thursday breaching a key support at ₹210. The fall was accompanied by above average volume. Investors with a short-term view can sell the stock at current levels. Since encountering resistance at ₹330 in July 2014, the stock has been in an intermediate-term downtrend. Both medium and short-term trends are also down for the stock. After constant testing of the key resistance at ₹230 this January, the stock failed to break this resistance level. The stock is hovering well below its 21- and 50-day moving averages.

The medium-term downtrend is intact. The daily relative strength index is featuring in the bearish zone and the weekly RSI has just entered this zone from the neutral region. It has potential to breach the immediate support at ₹200 and reach our price target of ₹195 and ₹191 in the upcoming trading sessions. Sell the stock with a stop-loss at ₹207.5.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

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