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We recommend a sell in the stock of Dena Bank from a short-term trading perspective. The stock closed almost 3 per cent down in the last session forming a large bearish candlestick pattern. Dena Bank is in a strong downtrend since the peak of Rs 128 formed in January this year. Following a consolidation in the range between Rs 87 and Rs 98 since the beginning of March, the medium-term downtrend appears to have resumed. This is signalled by the close below the previous trough at Rs 87.3. Next supports on the weekly charts are at Rs 84.2 and Rs 79.9. The relative strength index in the weekly chart is reversing lower without crossing above the 50 level and it is currently featuring at 35. This indicates that the medium-term view is negative for the stock.
Traders can sell the stock with the stop loss at Rs 89.2. Downward targets for the stock are Rs 84.2 and 80.6.
( Note: This recommendation is based on technical analysis. There is a risk of loss in trading.)
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