Technical Analysis

NBCC (I) (₹86.2): Sell

Gurumurthy K | Updated on June 04, 2018 Published on June 04, 2018


The outlook for the stock of NBCC (India) is bearish. The stock fell all through last week and was down over 8 per cent. This down move has extended to this week as well as the stock fell 3.8 per cent on Monday.

The stock has been in a strong downtrend since November last year. After a brief sideways consolidation over the last three months, the overall downtrend has resumed. The price action since March this year indicates the formation of a head and shoulder pattern. In this case this pattern will act as a continuation pattern. The target level of this pattern is ₹73. The neckline resistance of this pattern at ₹91 can cap the upside. Intermediate rallies to this hurdle can find fresh sellers coming into the market.

Traders with a short-term perspective can go short at current levels and also accumulate on rallies at ₹89. Stop-loss can be placed at ₹92 for a target of ₹74. Revise the stop-loss lower to ₹84 as soon as the stock moves down to ₹82. The outlook will turn positive only if the stock breaks above ₹91 decisively, which looks unlikely at the moment.

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

Published on June 04, 2018
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