Todays Pick

Godrej Industries (₹381.95): Sell

Akhil Nallamuthu BL Research Bureau | Updated on October 04, 2019

Godrej Industries   -  Bloomberg

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.)

Published on October 04, 2019

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor

You May Also Like