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We recommend a sell in the stock of Century Textiles & Industries from a short-term perspective. It is apparent from the charts of the stock that since encountering key long-term resistance at Rs 450 in early January, the stock has been on an intermediate-term downtrend. Following a short-term uptrend, the stock met with a resistance at around Rs 325 in late May. Subsequently, the stock started to decline, resuming its intermediate-term downtrend.
On Wednesday, the stock fell 2.5 per cent with good volume, decisively breaching its key support band between Rs 260 and Rs 270. The stock is hovering well below its 21- and 50-day moving averages. Both daily and weekly relative strength indices are featuring in the bearish zone.
We are bearish on the stock from the short-term perspective. We anticipate its decline to continue and reach our price target of Rs 241.5 or Rs 236 in the forthcoming trading sessions. Traders with short-term perspective can consider selling the stock with stop-loss at Rs 257 level.
( Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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