Comments
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.)
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.