Technical Analysis

Inox Wind (₹108.5)

Yoganand D BL Research Bureau | Updated on March 22, 2018

The stock of Inox Wind has been in a long-term downtrend since encountering resistance at ₹480 in May 2015. Significant long-term resistance at ₹150 capped the stock’s rally in the months of December 2017 and January 2018. However, the stock resumed its southward journey and has been in a medium-term downtrend since then. The short-term trend is also down for the stock.

In mid-January, the stock breached its moving average compression downwards and trades well below its 5-0 as well as 200-day moving averages. On Thursday, the stock fell 5.7 per cent, breaking an immediate support at ₹115. But, the stock has its next key support at ₹107, which is currently being tested. The daily and weekly relative strength indices are featuring in the bearish zone. There has been in increase in volume over the past three trading sessions backing the stock’s fall.

Both the daily and weekly price rate of change indicators are hovering in the negative territory, indicating selling interest.

Overall, the short-term outlook is bearish for the stock. It can breach the current support and extend the downtrend to reach the price targets of ₹104 and ₹102 in the short term. Traders with a short-term view can sell the stock with a stop-loss at ₹111.

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

Published on March 22, 2018

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