Technical Analysis

Brigade Enterprises (₹441.7): SELL

Gurumurthy K |BL Research Bureau | | Updated on: Jun 21, 2022

Book profits at ₹405

The bias is turning negative for the stock of Brigade Enterprises. The bounce in this stock from the low of ₹385.25 made last month seems to be losing momentum. This upmove has been facing resistance near ₹470. The stock has been staying stable below ₹470 and is indicating lack of strength to break above ₹470.  Support is at ₹435. A break below it can drag the stock down to ₹405-₹400 in the next two-three weeks.

Traders can go short at current levels. Accumulate shorts at ₹454. Keep the stop-loss at ₹469. Trail the stop-loss down to ₹436 as soon as the stock falls to ₹424. Move the stop-loss further down to ₹421 as soon as the stock touches ₹415 on the downside. Book profits at ₹405. The level of ₹400 is a strong trend support. So traders have to exit the short positions at the levels mentioned above. The 200-Day Moving Average (DMA) at ₹466 and the 100-DMA at ₹474 are key levels to watch. The stock will have to breach the 100-DMA to become bullish and negate the bearish view. But a rounding pattern on the chart keeps the chances very less for that to happen.

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

Published on June 22, 2022
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