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The outlook for the stock of Century Textiles & Industries is bearish. The stock tumbled over 7 per cent on Monday breaking below the key support level of ₹940. Any bounce in the coming days could be restricted to ₹940 as that level will now act as a good support-turned-resistance. Also, any bounce-back move will find fresh sellers coming into the market at higher levels. The stock has now room to fall towards ₹800 initially and then to ₹760-₹750 eventually.
Traders with a short-term perspective can go short at current levels. Accumulate on a rise at ₹920. Stop-loss can be placed at ₹965. Trail the stop-loss down to ₹860 as soon as the stock moves down to ₹810. Move the stop-loss further lower to ₹805 as soon as the stock falls to ₹780. Book profits at ₹760. The region between ₹760 and ₹750 is a strong support which can halt the fall. Only a strong break below ₹750 will indicate a long-term trend reversal. So, short positions have to be unwound around this support zone. Traders will have to watch closely the price action in the ₹760-₹750 support zone to get a cue on the next leg of move.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)
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