The short-term uptrend in the stock of Indus Towers Ltd that has been in place since August this year seems to have found a top.
The stock is getting strong selling interest coming into the market every time it touches the ₹325–₹228 price zone. The 3 per cent fall on Thursday may also be an early sign of a reversal. Intraday price movement since the beginning of the week indicates that the ₹315–₹320 region itself can act as a good resistance going forward. As such, any intermediate bounce in coming sessions can be capped at ₹315-₹320 for now.
The outlook is bearish. The stock can fall to ₹285-₹280. A break below ₹280 may see a much deeper fall to ₹265–₹235 going forward. Traders can go short in the stock at current levels and accumulate on a rise at ₹315. Stop-loss can be placed at ₹328 for the target of ₹265. Trail the stop-loss to ₹295 as soon as the stock moves down to ₹285. Move the stop-loss further down to ₹280 as soon as the stock moves down to ₹272.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)
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