Todays Pick

Delta Corp (₹244.35): SELL

Gurumurthy K | | Updated on: Dec 07, 2021
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The short-term outlook for Delta Corp is bearish. There is a double-top formation on the chart. The neckline resistance is around ₹255. Strong resistance is in the ₹250-260 region. This has been capping the upside well over the last one week. Any bounce is likely to be capped at ₹260 in the coming days as well.

There is room on the downside for the stock to fall towards ₹200-₹190. Traders can go short at current levels. Accumulate shorts on a rise at ₹252. Keep the stop-loss at ₹270. Move the stop-loss down to ₹238 as soon as the stock moves down to ₹226. Move the stop-loss further down to ₹223 as soon as the stock falls to ₹212. Book profits at ₹205. The bearish outlook will get negated if the stock breaks above ₹260 decisively. Such a break can take the stock up to ₹280-300 levels again. However, the price action over the last one week indicates that the strong selling interest is coming up in the market at around ₹260 levels. As such, the chances are high for the stock to remain below ₹260 and fall to ₹200-₹190 in the coming weeks.

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

Published on December 06, 2021

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