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Investors with a short-term perspective can sell the stock of Berger Paints India at current levels. On Thursday, the stock fell by 3 per cent breaching its 200-day moving average as well as a key support at ₹280. With this fall, the sock has strengthened its short-term downtrend that has been in place from the August 2018 high of ₹349.
While trending down, the stock has decisively breached its 21- and 50-day moving averages in the first week of September and continued to trend downwards. Later on, the key support at ₹300 was also breached. The stock has tumbled 6.7 per cent so far this week. The daily indicators such as moving average convergence divergence and price rate of change are featuring in the negative territory showing signs of weakness.
The daily relative strength index hover in the bearish zone and the weekly RSI has entered the bearish zone from the neutral region. The short-term outlook is bearish for the stock. It can extend its down-move and reach the short-term price targets of ₹262.5 and ₹257 levels in the coming trading session. Traders can sell with a fixed stop-loss at ₹279.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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