The outlook for the stock of Delta Corp is negative. The stock has been on a free fall over the last one week. It fell over 3 per cent on Tuesday breaking below a key support level of ₹240. The stock has tumbled over 9 per cent in the last one week. Cluster of supports are poised in between ₹241 and ₹245 which can cap the upside in the short term. Intermediate bounce to this resistance zone is likely to find fresh sellers coming into the market. A fall to ₹225 is likely in the near term. A further break below ₹225 will then increase the likelihood of the stock extending its downmove towards ₹210 and ₹200 over the short term.
Traders can go short at current levels and also accumulate at ₹238 and ₹242. Stop-loss can be placed at ₹252 for the target of ₹203. Revise the stop-loss lower to ₹228 as soon as the stock moves down to ₹223. The downside pressure will ease only if the stock breaches ₹245 decisively. The next targets are ₹260 and ₹270. But such a strong upmove breaking above ₹245 looks unlikely at the moment.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)