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We recommend a sell in the stock of Sintex Industries from a short-term perspective. It is evident from the charts of the stock that following a medium-term uptrend from its 52-week low of Rs 58 registered on December 19, 2011, the stock encountered significant long-term resistance around Rs 105 in early February. It lost momentum and then reversed lower. It is in a short-term downtrend since then.
With this decline, the stock appears to have resumed its intermediate-term downtrend. It breached its 21-day moving average while trending down last week. On Monday, the stock tumbled nine per cent with above average volume, penetrating its immediate support at Rs 83. The daily RSI is on the brink of entering into the bearish zone from the neutral region and weekly RSI has entered into the bearish zone from the neutral region.
The daily price rate change indicator is hovering in the negative terrain implying selling interest. The daily moving average convergence divergence indicator has signalled a sell. We are bearish on the stock from a short-term perspective. We expect the stock's decline to prolong and touch our price target of Rs 77 or Rs 74.5 in the upcoming trading sessions. Traders with short-term perspective can consider selling the stock with stop-loss at Rs 82.
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