Todays Pick

PI Industries (₹2,784.8): SELL

Akhil Nallamuthu | | Updated on: Nov 09, 2021

The stock of PI Industries was on a strong long-term uptrend since last March. But this trend is under threat as there is a strong sign of reversal. Bears are having an upper hand since September. This leaves the near-term outlook bearish. A confirmed head and shoulder pattern can also be spotted on the daily chart, indicating a bearish reversal.

The 21-day moving average (DMA) has slipped below the 50-DMA and the stock has broken below a rising trendline. In addition to these, the RSI and the MACD have entered bearish territory. So, the scrip can witness a fall in the coming days. A test of the supports at ₹2,430 and ₹2,200 looks likely in the coming weeks. However, an intermediate corrective rally to ₹2,930 is a possibility that will be short-lived as fresh selling interest can emerge at higher levels. Hence, traders can short now and also at ₹2,930. Keep an initial stop-loss at ₹3,070. When stock depreciates to ₹2,430, exit 50 per cent shorts. For the remaining, revise the stop-loss down to ₹2,650 and look for the next target at ₹2,200

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

Published on November 09, 2021

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

Recommended for you