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Investors with a short-term perspective can consider going short on India Cements. The stock fell 2.1 per cent on Monday, thereby extending its fall to over 5 per cent in the last two trading days.
The stock has declined below its key 55-day moving average and a trend line support. These two levels were providing strong support and limiting the downside for the stock since early February. These supports are currently placed at ₹98 and ₹97 and they can act as strong resistance for the stock now. Any intermediate rallies to these levels could find fresh selling interest coming into the market.
While the stock trades below ₹98, a fall to ₹90 and ₹88 looks likely in the short term. Traders can sell the stock with a stop-loss at ₹97 for the target of ₹90. The downside pressure on the stock will ease only on a strong break above ₹98. But an immediate break above this hurdle looks unlikely.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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