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The shares of Godrej Industries marked a fresh 52-week low on Thursday and closed at ₹381.9, below the crucial support level of ₹400.
The stock has been weak since the beginning of the year.In September, it attempted to recover from ₹400 levels, where it rallied during the first half of the month and appreciated to ₹440, piercing above 21-day moving average offering temporary hope for the bulls. It even tested the 50-DMA. But the price witnessed selling pressure from that level and started declining from the latter half of September. On Thursday, reaffirming the bearish trend, the stock moved below the 21-DMA.
Now that the psychological level of ₹400 is breached, the stock will most likely tumble towards the next support level at ₹364 in the short term. If that level could not stop the decline, the weakness might even drag the price further downwards to ₹340 levels over the medium term. Hence, traders can sell the stock on rallies with a stop-loss above the 21-DMA at ₹410.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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