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Investors with a short-term perspective can consider selling the stock of UPL (formerly United Phosphorus Ltd) at current levels. It is evident from the charts of the stock that after taking support at ₹180 in March, it started trending upward. This uptrend accelerated in April and ultimately encountered resistance at ₹350 in early July.
Subsequently, the stock reversed direction triggered by negative divergence. The stock recently failed to surpass its immediate resistance at ₹334 and resumed its downtrend. On Thursday, it fell almost 5 per cent, conclusively breaching its 21- and 50-day moving averages.
Further, the moving average convergence divergence indicator has signalled a sell. The price rate of change oscillator is featuring in the negative area implying selling interest. Our short-term outlook on the stock is bearish. The downtrend can extend and reach our price target of ₹303.5 and ₹297 levels. Sell the stock with a stop-loss at ₹323.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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