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Investors with a short-term perspective can consider selling the stock of Rural Electrification Corporation at current levels. The stock fell almost 6 per cent last week, decisively breaking a key long-term support level of ₹185. This selling pressure extended on Tuesday as well and the stock tumbled 4 per cent with an above average volume breaching the next base at ₹175 . With this the short-term downtrend that has been in place since hitting the key resistance at ₹220 in early May has strengthened.
The stock trades well below its 21- and 50-day moving averages. The daily indicators are featuring in the negative territory backing the stock's fall. The weekly price rate of change indicator is featuring in the negative terrain implying selling interest. Moreover, the weekly relative strength index is charting down in the neutral region indicating weakness. The short-term outlook is bearish for the stock of Rural Electrification Corporation. Traders with a short-term view can sell the stock with a stop-loss at ₹173. Targets are ₹162.5 and ₹158.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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