Technical Analysis

Indraprastha Gas (₹533): Sell

BL Research Bureau | Updated on January 21, 2021

CNG Filling station at New Delhi.

Investors with a short-term horizon can sell the stock of Indraprastha Gas Ltd (IGL) at current levels. The stock has been on an intermediate-term uptrend since it took support at ₹364 in early October 2020. It has conclusively breached a key resistance at around ₹505 in early January this year and registered a new high at ₹581 in mid-January. However, witnessing selling interest and triggered by negative divergence on the daily relative strength index the stock began to decline. Key resistance at ₹560 had limited the recent rally. It has slumped 4.9 per cent with good volume on Thursday and the stock appears to have resumed the down-move. On the weekly chart, the stock has formed a bearish engulfing candlestick pattern which is a short-term bearish reversal pattern, backing the down-move. The daily RSI has slipped into the neutral region from the bullish zone. Taking a contrarian view, the short-term outlook is bearish for the stock. It has potential to extend the down-move and reach the price targets of ₹512 and ₹500 in the forthcoming trading sessions. Traders can sell with a fixed stop-loss at ₹545.

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

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

Published on January 21, 2021
This article is closed for comments.
Please Email the Editor