Today's Pick

Syndicate Bank: Rs 98.50 - Sell

D Yoganand | Updated on November 09, 2017 Published on January 18, 2011

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We recommend a sell in the stock of Syndicate Bank from a short-term perspective.

It is seen from the charts of the stock that after recording an all-time high at Rs 164 in November 2010, the stock changed direction triggered by prolonged negative divergence displayed in the daily relative strength index (RSI).

Since then, the stock has been on a medium-term downtrend, forming lower troughs and peaks. The stock plummeted 8 per cent last week, breaching its long-term uptrend-line and its 200-day moving average around Rs 110.

Moreover, the stock slumped 4.5 per cent on Monday, penetrating its key support level of Rs 100 and the 50 per cent Fibonacci retracement level of its earlier up move.

The stock is hovering well below its 50-and 200-day moving averages.

Daily RSI is in the bearish zone and weekly RSI has entered this zone from the neutral region.

Both daily and weekly price rate of change indicators are in the negative territory implying selling interest. We are bearish on the stock.

We anticipate its downtrend to continue until it reaches our price target of Rs 95 or Rs 92.5. Traders with short-term perspective can consider selling the stock with stop-loss at Rs 101.

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Published on January 18, 2011
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