Comments
Movement of Exide Industries is quite lacklustre on the charts and investors with a short-term perspective can consider selling the stock for some quick gains. The stock is in a long-term downtrend since the October 2012 peak of Rs 166. This downtrend resumed after the stock encountered a major resistance around Rs 137 in mid-October 2013. A short-term downtrend is in progress since then. While trending down, the stock has emphatically breached its moving average compression — formed by the inter-twining of the 21-, 50- and 200-day moving averages — at Rs 128.
On Wednesday, the stock conclusively breached a key support at Rs 120 by declining 2.5 per cent with above average volumes. Indicators on the daily chart are featuring in the bearish zone implying downward momentum. The short-term outlook for the stock is bearish. It can extend its decline in the ensuing trading sessions. Traders with a short-term perspective can sell with a stop-loss at Rs 120.20 levels. Targets are Rs 113 and Rs 110.5.
( Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
Comments
COMMENT NOW
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.