Todays Pick

Firstsource Solutions (₹179.7): SELL

Gurumurthy K | | Updated on: Nov 10, 2021
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The outlook for the stock of Firstsource Solutions is bearish. The stock had tumbled 9.52 per cent on Wednesday. This fall dragged the stock well below the near-term support level of ₹193. Immediate support is at ₹176. This can hold on to its first test.

A corrective bounce to ₹190-₹192 cannot be ruled out in the coming days. However, the upside is likely to be capped at ₹193. A break above ₹193 is unlikely as fresh sellers are likely to emerge at higher levels and keep the stock under pressure. The chances of a sideways consolidation between ₹176 and ₹193 is also a possibility for some time. However, the stock is more likely to break below ₹176 eventually and see a fresh fall going forward. Such a break can target ₹150-₹145 on the downside. Traders can go short at current levels and also add the short positions at ₹188. Stop-loss can be placed at ₹195. Trail the stop-loss down to ₹174 as soon as the stock moves down to ₹168. Move the stop-loss further down to ₹165 as soon as the stock price falls to ₹159. Book profits at ₹150.

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

Published on November 10, 2021

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