Technical Analysis

Sundaram-Clayton (₹4,180.7): SELL

Gurumurthy K | | Updated on: Dec 08, 2021
image caption

The stock of Sundaram-Clayton has been in a strong downtrend over the last couple of weeks. The stock made a high around ₹5,123 in the last week of November and has tumbled over 18 per cent from there. The stock can fall to ₹4,020-₹4,000 from here. Thereafter a corrective bounce to ₹4,200 cannot be ruled out. However, the trend will continue to remain down.

The bounce towards ₹4,200 will get fresh sellers coming into the market and cap the upside. As such a break above ₹4,200 is unlikely. A pull-back from ₹4,200 will have the potential to break ₹4,000. Such a break ₹3,750 initially and then to ₹3,500 eventually. Traders can go short at current levels . Stop-loss can be placed at ₹4,425. Trail the stop-loss down to ₹4,075 as soon as the stock moves down to ₹3,930.

Move the stop-loss further down to ₹3,910 as soon as the stock falls to ₹3,840. Book profits at ₹3,750. The region between ₹3,550 and ₹3,500 is a strong medium-term support. As such the downtrend can end anywhere in that support zone and a fresh rally is possible thereafter.

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

Published on December 07, 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