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The stock of Steel Authority of India tumbled 4 per cent accompanied by above average volume on Thursday, breaching a long-term support at ₹65. Investors with a short-term perspective can sell the stock at current levels. Since its June 2014 peak of ₹112, the stock has been on an intermediate-term downtrend. Medium- and short-term trends are also down. The stock, which had found a base at its long-term support zone between ₹65 and ₹68 in early March 2015 and late May, broke below it in the previous session.
The stock trades well below its 50- and 200-day moving averages. Further, the price rate of change indicator hovers in the negative territory implying selling interest. The short-term forecast for the stock is bearish. It can extend its downtrend in the coming trading sessions and reach the price target of ₹59.5 and ₹58.5. Sell the stock while maintaining a stop-loss at ₹63.5 levels.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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