Today's Pick

Andhra Bank (Rs 120) - Sell

| Updated on: Sep 22, 2011
image caption

Andhra Bank (Rs 120)

We recommend a sell in the stock of Andhra bank from a short-term perspective. It is seen from the charts of the stock that ever since registering its all-time high at Rs 190 in October 2010, it has been on an intermediate-term downtrend. Its downtrend-line is in tact.

After encountering twin resistance (down trend-line and a key long-term resistance) in the first week of September at around Rs 130, the stock fell steeply resuming its downtrend. The stock is trading well below its 21-and 50-day moving averages. On Thursday, the stock fell 3.4 per cent reinforcing its ongoing downtrend.

Daily relative strength index has entered into the bearish zone from neutral and weekly RSI is featuring in this zone. Both daily and weekly moving average convergence divergence indicators are hovering in the negative territory implying downward momentum. Daily as well as weekly price rate of change oscillators are also featuring in the negative area implying selling interest.

We are bearish on the stock from a short-term perspective. We expect its decline to prolong and reach our price target of Rs 118.5 or Rs 112.5 in the forthcoming trading sessions. Traders with short-term perspective can consider selling the stock with stop-loss at Rs 123.

Published on September 22, 2011

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor

You May Also Like

Recommended for you