Today's Pick

Liberty Shoes (₹165.9)

Gurumurthy K | Updated on March 12, 2018 Published on January 18, 2016

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The outlook for the shares of Liberty Shoes is bearish. Investors with a short-term perspective can consider selling this stock at current levels. The stock, which opened with a big downward gap, eventually closed 4.6 per cent lower on Monday. The stock plummeted 16 per cent in the last one week.

Prior to this fall, it was trading in a broad sideways range between ₹185 and ₹220 since August last year. The fall since last week has broken this range on the downside and has also strengthened the short-term downtrend. Additionally, Monday’s fall has taken the stock decisively below the 61.8 per cent Fibonacci retracement level.

Immediate resistances are at ₹170 and ₹172. Key short-term resistances are between ₹175 and ₹178. The stock can fall to ₹160 and ₹155. Traders with a short-term perspective can go short. Stop-loss can be kept at ₹171 for a target of ₹157. The downside pressure will ease only after it breaks above the ₹175-₹178 resistance zone.

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

Published on January 18, 2016
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