Comments
Investors with a short-term perspective can sell the stock of Amara Raja Batteries at current levels. Following a medium-term uptrend from the 52-week low of ₹350 seen in late March this year, the stock had encountered a key resistance at ₹680 in early June.
After testing this resistance early this week, the stock reversed direction triggered by negative divergence on the daily RSI. It fell 3 per cent on Thursday, breaking below the key base level at ₹650.
The near-term trend is bearish for the stock. Besides, the medium-term uptrend is losing bullish momentum. There has been a fall in daily volumes over the past week. The daily RSI has entered the neutral region from the bullish zone and the weekly RSI is featuring in the neutral region. In line with the stock price, the daily price rate of change indicator has been charting down over the past one week.
With the stock declining below the crucial level of ₹650, the short-term outlook has turned bearish. It can witness selling pressure at higher level and continue to trend downwards. Traders with a short-term view can sell the stock at current levels with stop-loss at ₹654. Short-term targets are at ₹615 and ₹600.
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.