Today's Pick

Jet Airways (₹451.9)

Gurumurthy K | Updated on January 16, 2018 Published on October 13, 2016

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The outlook for the stock of Jet Airways is bearish. The stock has been falling continuously for more than a week now. It fell 3.3 per cent on Thursday. It has tumbled 10 per cent from its recent high of ₹502.75 recorded on October 4. The stock’s overall downtrend that has been in place since January remains intact. Immediate resistance is at ₹474 – the 100-week moving average which is likely to limit the upside in the short-term. Any intermediate rally to this resistance level may attract fresh selling interest in the stock. A fall to test the 200-week moving average at ₹415 looks likely in the coming days. Traders with a short-term perspective can go short. Stop-loss can be placed at ₹477 for the target of ₹415. Accumulate shorts on rallies to ₹465. Revise the stop-loss lower to ₹445 as soon as the stock falls to ₹435. The downside pressure for the stock will ease if it breaches ₹475. However, the outlook will turn completely positive only if it breaks above the psychological ₹500 mark decisively. But such a strong rally looks unlikely in the near-term.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

Published on October 13, 2016
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