2212Escorts_col
The outlook for the stock of Escorts is bearish. Investors with a short-term perspective can sell it at current levels. The stock tumbled over 4 per cent on Wednesday. It has been falling continuously over the last four trading days, plummeting about 10 per cent over this period. The bounce-back from the November low of ₹270 found resistance at around ₹331.
Both the 100-DMA as well as the 38.2 per cent Fibonacci retracement resistance levels are poised at around ₹331. So, the reversal from ₹331 since the second week of this month, indicates that the overall downtrend that has been in place since October is intact. A revisit of ₹270 is possible in the near term. A strong break below ₹270 will see the downtrend extending to ₹260 and ₹256.
Traders with a short-term perspective can go short. Stop-loss can be placed at ₹299 for the target of ₹260. Revise the stop-loss lower to ₹280 if the stock moves down to ₹273.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
More Like This
Published on December 21, 2016
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.