Today's Pick

CESC (₹607.3)

Yoganand D. BL Research Bureau | Updated on March 12, 2018

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Investors with a short-term perspective can consider selling the stock of CESC at current levels. The stock has been on an intermediate-term uptrend from its August 2013 low of ₹271. However, after recording a new high at ₹785 in early July, the stock began to decline. This trend reversal has been backed by formation of a bearish engulfing candlestick pattern on the daily chart and negative divergence in the weekly relative strength index. Since then, the stock has been on a short-term downtrend.

On Monday, the stock plunged 5 per cent, decisively breaching its key immediate support at ₹630 as well as 50-day moving averages. For the past two weeks, the daily volumes are decreasing. The daily indicators and oscillators are trending downwards backing the stock’s on going downtrend. Our short-term outlook is bearish on CESC. It can extend its short-term downtrend and reach the price target of ₹582 and then ₹570 in the approaching trading sessions. Traders with short-term horizon can sell the stock with a stop-loss at ₹621.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

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Published on July 29, 2014
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