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The stock of Cadila Healthcare slumped 3 per cent accompanied by above average volume on Thursday, decisively breaching a key support around ₹325 as well as the 50-day moving average. Investors with a short-term view can consider selling the stock at current levels.
Since encountering a key resistance at ₹550 in July 2017, the stock has been trending downwards. Medium as well as short-term trends are down. Following a corrective rally, the stock has encountered a key resistance at ₹350 in early April this year. Subsequently, it resumed the downtrend breaching the 21-DMA. The stock now trades well below the 21- and 50-DMAs.
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The daily and the weekly relative strength indices have entered the bearish zone from the neutral region. Besides, the daily as well weekly price rate of change indicators feature in the negative territory implying selling interest.
The short-term trend is bearish for the stock. It can continue to trend downwards and reach the price targets of ₹303 and ₹296. Traders can sell the stock with a stop-loss at ₹322.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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