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The stock of Blue Star has been stuck between ₹965 and ₹1,030 over the last three weeks. Though this range is still intact, the price action on the chart leaves a bearish bias. As such, we expect the stock to break this range on the downside below ₹965 in the coming days. The next immediate support is at ₹940-930. An eventual break below ₹930 will pave way for a steeper fall to ₹860-850 in the coming weeks. So traders can go short at current levels.
Accumulate shorts at ₹1,010. Keep the stop-loss at ₹1,045. Revise the stop-loss down to ₹960 as soon as the stock falls to ₹920. Move the stop-loss further down to ₹910 as soon as the stock touches ₹890. Book profits at ₹870. The stock has to rise past ₹1,030 decisively in order to negate the fall to ₹860-850. But that looks less probable as seen from the charts as there is a rounding pattern formation is seen. As such, fresh sellers coming into the market at higher levels.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)
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