The stock was in a medium-term downtrend, in place since this February peak of Rs 253. This trend accelerated last week and the stock slumped 8.5 per cent on Friday following its disappointing fourth quarter numbers.

For the week, the stock has tumbled 14 per cent with good volumes. But it is testing a key long-term support band between Rs 170 and Rs 180. Its daily indicators and oscillators are hovering in the oversold territory. The stock has breached the daily Bollinger bands' lower boundary implying oversold.

An upward reversal from the aforesaid support band can push the stock higher to Rs 195 and to Rs 210 in the short-term. A strong rally above Rs 225 is needed to alter its downtrend and take the stock higher to Rs 245.

On the other hand, an emphatic breakthrough of the Rs 170 support will strengthen the stock's downtrend and pave the way for a medium-term decline to Rs 154 and then to Rs 142.

Rallis India (Rs 124.9)

The stock gained 10.5 per cent in the previous week. It is currently testing its intermediate-term down trendline that has been in place from October 2011 peak of Rs 185 and a key resistance around Rs 130. Breach of this resistance will take the stock higher to Rs 140 which is a significant long-term resistance.

Next important resistances are positioned at Rs 150 and Rs 160. Only a conclusive breakthrough of Rs 160 will alter the downtrend and push the stock northwards to

Rs 180. The inability to surpass the resistance level of Rs 140 will confine the stock to trading broadly between Rs 115 and Rs 140. However, a fall below Rs 115 can drag the stock lower to Rs 103. Subsequent support for the stock is at Rs 94.

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