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Last week the stock bounced back strongly, making the earlier close below its 200-day moving a false breakthrough. It had surged 7 per cent early in the week, but Friday’s sell off eroded some of the stock’s initial gains and it settled for a 4.5 per cent gain. Formation of a bearish engulfing candlestick pattern on Friday signals a near-term reversal and weakness. Moreover, the stock has key resistances ahead at ₹354 and ₹360. Only a decisive breach of ₹360 can push the stock higher to the long-term resistance level of ₹370. The indicators are hovering in the neutral region with a negative bias. Current reversal can thus drag the stock down once again to test its 200 DMA and a key support at ₹331. Downward break of this support can pull the stock to ₹320 and then to ₹310. Desist trading in the stock.
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