Investors with a short-term perspective can consider taking short positions in the stock of Rolta India. The stock plunged 3 per cent on Tuesday, extending its fall for the sixth consecutive day. Tuesday’s fall has led to a bearish breakout of the short-term sideways consolidation range between ₹107 and ₹118 that was in place since late September. Also, this breakout has happened on the back of strong volumes. Key resistance for the stock is now at ₹108. The outlook will remain bearish as long as the stock trades below this level.
Any intermediate rallies towards ₹108 if seen, could attract fresh selling interest coming into the market at this level. The stock can extend its fall towards ₹102 in the coming sessions. Go short with a stop-loss at ₹108.5 for the target of ₹102.
The outlook for the stock will turn positive only on a strong break and close above ₹108.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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