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The price action in the stock of Minda Industries is showing sign of a reversal. The stock has failed in its various attempts to breach ₹1,250 since December last year.
The recent sharp fall below ₹1,100 has turned the short-term outlook bearish. Strong resistances are at ₹1,080 and ₹1,140. On the charts, the chances are looking high for the first resistance at ₹1,080 itself to hold well in case any bounce-back move is seen.
There is room to see a fall to ₹900-890 in the coming weeks. Traders can go short at current levels. Accumulate shorts at ₹1,060 if a corrective bounce is seen. Keep the stop-loss at ₹1,110. Trail the stop-loss down to ₹990 as soon as the stock moves down to ₹955.
Move the stop-loss further down to ₹960 when the stock touches ₹935. Book profits at ₹910. The region between ₹900 and ₹890 is a strong medium-term trend line support zone.
A strong bounce-back towards ₹1,000-1,100 from the ₹900-890 support zone cannot be ruled out. So, traders will have to exit their shorts above this support zone and approach from the long side if a strong bounce is seen.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)
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