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We recommend a sell in the stock of Indiabulls Real Estate from a short-term perspective. It is seen from the charts of the stock that after a corrective up move from its February low of Rs 99, it encountered significant resistance around Rs 150 in mid-April. The stock subsequently, resumed its intermediate-term downtrend triggered by negative divergence in the daily relative strength index. Since then it has been on a short-term downtrend as well.
On Tuesday, the stock tumbled seven per cent, conclusively breaching its key support band between Rs 120 and Rs 125. It is currently hovering well below its 21- and 50-day moving averages. The daily relative strength index has entered into the bearish zone from the neutral region and weekly RSI is on the verge of entering the bearish zone. Daily moving average convergence divergence indicator has signalled a sell and is on the brink of entering the negative territory. Both daily and weekly price rate of change indicators are featuring in the negative area indicating selling interest.
We anticipate the stock's decline to continue until it reaches our price target of Rs 113 or Rs 109 in the approaching trading sessions. Traders with short-term perspective can consider selling the stock with stop-loss at Rs 120.5.
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