Comments
We recommend a sell in the stock of Ajanta Pharma from a short-term perspective. It is apparent from the charts of the stock that in late January, it emphatically broke out of a key resistance at Rs 450 and started accelerating. Since then it has been on an intermediate-term uptrend. However, the stock began to lose its bullish momentum and started to decline, after registering an all-time high at Rs 1,014 in late May. Thereafter, the stock changed direction triggered by negative divergence in daily relative strength index. Moreover, we also notice that weekly RSI is displaying prolonged negative divergence backing the stock’s trend reversal.
Last trading session, the stock tumbled 5.5 per cent with above average volume decisively breaching its significant support at Rs 900.
Near-term trend for the stock is down. Our short-term outlook is bearish. We anticipate its decline to continue and reach our price target of Rs 815 or Rs 798 in the approaching trading sessions. Traders with short-term perspective can sell the stock with stop-loss at Rs 867 level.
( Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.