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The stock of Delta Corp was on a sideways movement in the band between ₹210 and ₹250 since mid-May 2018. On Thursday, the stock fell almost 3.9 per cent with good volume, breaking below the key support level of ₹210. This fall gives traders with a short-term perspective an opportunity to sell the stock at current levels.
The stock encountered resistance at around ₹250 last week and resumed its downtrend. It has tumbled 8 per cent so far this week, decisively breaching its 21- and 50-day moving averages. With the recent fall, the stock has strengthened its medium-term downtrend that has been in place since February 2018 high of ₹386.
Both the daily and weekly relative strength indices feature in the bearish zone backing the downtrend. Also, the daily and weekly price rate of change indicators are hovering in the negative terrain implying selling interest.
The short-term outlook is bearish for the stock. It can continue to decline and reach the price targets of ₹196 and ₹192 in the short term. Traders can sell the stock with a stop-loss at ₹209.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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