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Investors with a short-term perspective can sell the stock of Rallis India at current levels. The stock encountered a key resistance at ₹273 in mid-July 2015 and started declining. Since then, the stock has been in a medium-term downtrend. While trending down, the stock decisively breached its 50- and 200-day moving averages in late July and now trades well below these levels. Moreover, the short-term trend for the stock is also down. On Wednesday, it 3.3 per cent accompanied by extraordinary volume, conclusively breaking a key support at ₹200 levels. The daily as well as weekly relative strength indices are featuring in the bearish zone backing the stock’s downtrend. Further, the daily moving average convergence divergence and price rate of change indicators are hovering in the negative territory, implying downward momentum. The short-term outlook is bearish for Rallis India. It can extend its ongoing decline and reach the price targets of ₹184.5 and ₹180 in the upcoming trading sessions. Sell the stock while maintaining a stop-loss at ₹196.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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