Investors with medium-term perspective can consider selling the stock of UCO Bank (Rs 104.4). After bottoming in March 2009 at Rs 22, the stock had a spectacular uptrend until it encountered resistance at Rs 152 in November 2010. The stock has been on an intermediate-term downtrend since then. While trending down, the stock conclusively broke out of a key support at Rs 120 which thereafter turned in to a significant resistance. Following a corrective rally between late February and early April, the stock encountered resistance at Rs 120 (which also coincides with the 50 per cent fibonacci retracement level of its previous down-move) and reversed lower. On April 29, the stock plummeted 9 per cent with good volumes emphatically breaking through its 200-day moving average around Rs 114 and an important support Rs 110. The daily RSI has entered in to the bearish zone from the neutral region and weekly RSI is sloping towards the bearish zone after reversing from 60-levels. Both daily and weekly price rate of change indicators are featuring in the negative territory implying selling interest. Further, daily MACD has signalling a sell.

We are bearish on UCO Bank from a medium-term perspective. We believe that the stock has the potential of trending down and touching our price target of Rs 85 in the medium-term, following a minor pause around Rs 95. Investors with medium-term perspective can consider selling the stock with stop-loss at Rs 114.

Lumax Auto Technologies (Rs 158.4)

The stock was volatile last week and finished flat. We reiterate our medium-term bullish forecast on the stock.

(This recommendation is based on technical analysis. There is a risk of loss in trading.)

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