The stock of Future Retail (FRL) plunged 4 per cent with above average volume on Wednesday. The psychological support at ₹100 was breached during this fall. Investors with a short-term perspective can sell the stock at current levels. The stock encountered a significant resistance at ₹145 in early May and then again in June 2014 and failed to surpass it.

Since then, the stock has been on an intermediate-term downtrend, forming lower peaks and lower troughs. Last week, the stock conclusively breached its 200-day moving support and extended its decline. It is hovering well below its 50- and 200-day moving averages. The indicators in the daily chart are featuring in the bearish zone implying downward momentum. The indicators in the weekly chart have entered the bearish zone from the neutral region backing the downtrend. The short-term outlook for FRL is bearish. It can extend its downtrend and touch ₹93.5 and ₹91.5 in the upcoming trading sessions. Sell the stock with a stop-loss at ₹100.

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

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