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The stock of Jai Corp has been on a medium-term downtrend since encountering a key long-term resistance at ₹170 in early September 2018. While trending down, the stock decisively breached a vital support at ₹120 in late September which has turned into a significant resistance.
Following a corrective rally, the stock met with this resistance at ₹120 as well as 21-day moving average in early November and began to decline. Since then, the stock has been on a near-term downtrend.
On Wednesday, the stock tumbled 3.8 per cent accompanied with above average volume breaking below a key support at ₹105 decisively. The short-term trend is down. The stock trades well below its 21- and 50-day moving averages. The daily relative strength index has entered the bearish zone from the neutral region and the weekly RSI feature in the bearish zone.
The short-term outlook is bearish. The stock can continue to trend down and reach the price targets of ₹98 and ₹95.5 in the coming trading sessions. Traders can sell the stock with a stop-loss at ₹104.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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