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The stock of Housing Development and Infrastructure fell 6.8 per cent breaching an immediate support at around ₹64.5 as well as the 100-DMA on Wednesday.
Investors with a short-term perspective can consider selling the stock at current levels. The stock has been on an intermediate-term downtrend since encountering a key resistance at ₹108 in July 2016. This downtrend halted at around ₹52 in late December 2016 and reversed direction. It then moved into a corrective medium-term uptrend until it encountered significant resistance in the band between ₹70-72 last week. Wednesday’s fall saw the stock slipp below the middle line of the band, indicating selling pressure. Volumes on the daily chart are declining. The daily relative strength index is weakening as it charts downwards in the neutral region. Sell the stock with stop-loss at ₹65.5. The short-term targets are ₹61 and ₹60.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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