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We recommend a sell in the stock of Andhra Bank from a short-term perspective. It is evident from the charts of the stock that it has been on a medium-term downtrend since peaking out at its January peak of Rs 130. The stock emphatically breached its 200-day moving average line and key support in early February and continued its downtrend. Short-term trend is also down for the stock.
On Thursday, the stock fell by 2.4 per cent with above average volume, conclusively breaking through its significant support at Rs 90 which it was testing for the past one month. The stock is hovering well below its 21- and 50-day moving averages. The daily moving average convergence divergence indicator has signalled a sell. Both daily and weekly price rate of change indicators are featuring in the negative area implying selling interest. Our short-term forecast on the stock is bearish. We anticipate its downtrend to continue and reach our price target of Rs 84 or Rs 82 in the ensuing trading sessions. Traders with short-term perspective can sell the stock with stop-loss at Rs 89.5 level.
( Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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