Todays Pick

Berger Paints (₹749.80): SELL

Gurumurthy K BL Research Bureau | Updated on October 21, 2021

The outlook for the stock of Berger Paints is bearish. The stock has been under pressure since the beginning of this week. It fell sharply by 6.2 per cent on Thursday and is down over 10 per cent so far this week.

The sharp fall this week marks the end of the prolonged sideways consolidation that was in place since late May this year. It also indicates a trend reversal. Immediate resistance is at ₹770 and the next one is at ₹800. We can expect the first resistance at ₹770 itself to cap the upside from here. The chances are high for the stock to fall further towards ₹700-₹690 initially and then to ₹670 eventually in the coming weeks. Traders can go short at current levels and accumulate shorts on a rise at ₹765. Stop-loss can be placed at ₹785. Book profits at ₹675.

Trail the stop-loss down to ₹735 as soon as the stock moves down to ₹720. Move the stop-loss further down to ₹715 as soon as the stock falls to ₹705.

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

Published on October 22, 2021

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor

You May Also Like