We recommend a sell in the stock of Rural Electrification Corporation from a short-term perspective. It is seen from the charts of the stock that it has been on a long-term downtrend from its October 2010 peak of Rs 409. However following a corrective rally from this October low of Rs 155, the stock encountered resistance at its significant long-term resistance level at around Rs 209 on November 9. Moreover, the stock’s 200-day moving average poised around Rs 210 also acted as a key resistance. Subsequently, the stock resumed its primary downtrend and has been a short-term downtrend as well. On Monday, the stock plunged 7 per cent accompanied by above average volume, penetrating its key medium-term support at Rs 180. The stock is hovering well below its 21 and 50-day moving averages. The daily relative strength index has entered in to the bearish zone from the neutral region. The daily moving average convergence divergence indicator has signalled a sell and is on the brink of entering in to the negative territory. Our short-term outlook is bearish on the stock. We expect the stock to decline further and reach our short-term price target of Rs 166 or Rs 161 in the upcoming trading session. Traders with short-term perspective can consider selling the stock with stop-loss at Rs 177.