Technical Analysis

NMDC (₹83.5): Sell

Akhil Nallamuthu | Updated on June 30, 2020

BL Research Bureau

The stock of NMDC on Monday closed below the support at ₹82.2, opening the door for further decline. Thus, the stock presents a short-term selling opportunity.

The stock, which has been gaining since last week of May, rallied from around ₹71 to make a three-month high of ₹94.9 in early June. Unable to rally beyond that level, the price started to moderate, and during the past two weeks, the stock has been oscillating between ₹82.2 and ₹89.4. Last session, the lower boundary of the range, i.e. ₹82.2 was breached.

The price is below the 21-day moving average, indicating a bearish bias. The daily Relative Strength Index (RSI) has slipped into bearish territory, and the Moving Average Convergence Divergence (MACD) indicator in the daily chart has been in a downward trajectory. These factors substantiate the weak outlook for the stock.

Hence, traders can short the stock with stop-loss at ₹86 and look for targets at ₹80 and ₹78.

Supports: ₹80 and ₹78

Resistances: ₹85 and ₹86

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

Published on June 30, 2020

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