Technical Analysis

Radico Khaitan (₹243.3): Sell

Yoganand D BL Research Bureau | Updated on March 24, 2020

Investors with a short-term perspective can sell the stock of Radico Khaitan at current levels. The stock tumbled 20 per cent decisively breaking below a key long-term support level at ₹265 on Monday. This fall has strengthened the medium-term downtrend that has been in place since recording a 52-week high of ₹439 in late February this year.

While trending down, the stock breached a key support at ₹335 in early March and this level acted as a key resistance and limited the rally. Subsequently, the stock continued to trend downwards. Short-term trend is also down for the stock. It trades well below the 50- and 200-DMAs.

The daily relative strength index features in the bearish zone and the weekly RSI has entered this bearish zone from the neutral region. Besides, the daily as well as the weekly price rate of change indicators are hovering in the negative territory implying selling interest.

The short-term outlook for the stock is bearish. It can continue to trend downwards and reach the price targets of ₹233 and ₹228 in the upcoming trading sessions. Traders can sell the stock with a stop-loss at ₹249 levels.

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

Published on March 23, 2020

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