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Investors with a short-term perspective can consider selling the stock of Oriental Bank of Commerce at current levels. Since encountering a key resistance at ₹370 in late May and early June this year, the stock has been on a medium-term downtrend. In the past one month, the stock has moved sideways forming a descending triangle pattern with a baseline around ₹270.
On Wednesday, the stock decisively breached this baseline and tumbled 6 per cent, backed by high volumes. This fall has strengthened the stock’s medium- as well as short-term downtrend. The RSI on the daily chart has entered the bearish zone from the neutral region. The stock has been hovering well below its 21- and 50-day moving averages. Our short-term outlook on the stock is bearish. The stock can extend its fall and the target ₹249 and ₹243 in the coming trading sessions. Sell the stock with a stop-loss at ₹265.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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