We recommend a sell in the stock of Sintex Industries from a short-term perspective. It is seen from the charts of the stock that in May it encountered resistance in the band between Rs 190 and Rs 195, a key resistance band and started to decline. Since then, it has been on a medium-term downtrend.

Moreover, it appears to have resumed its intermediate-term downtrend that has been in place from its November 2010 peak of Rs 237 levels. On August 2, the stock fell 3.5 per cent, conclusively breaching its moving average compression (21-, 50- and 200-day moving averages) at around Rs 177.

Further, strengthening its downtrend, the stock emphatically penetrated its long-term support at Rs 165 by declining almost four per cent with above average volume on Thursday. Daily relative strength index is featuring in the bearish zone and weekly RSI is slipping in the neutral region towards the bearish zone.

The daily moving average convergence divergence indicator has entered into the negative territory implying downward momentum. Both daily and weekly price rate of change indicators are hovering in the negative terrain signalling selling pressure.

We are bearish on the stock from a short-term horizon. We expect it to decline further and reach our price target of Rs 154.5 or Rs 150 in the forthcoming trading sessions. Short-term traders can consider selling the stock with stop-loss at Rs 164 levels.

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