The stock of Max Financial Services Limited (MFSL) breached an important support at ₹670 on Wednesday. Before ending the day at ₹652.85, it marked a fresh 52-week low of ₹652.35. Daily closing price is near one-year low meaning good amount of selling on Wednesday.
The charts indicate further fall and the possibility of the scrip touching ₹620 is very high. But there could be a minor uptick to ₹665 before the next leg of fall. So, traders can initiate fresh shorts at the current level of ₹652.85 and add more shorts when price rises to ₹665. Place initial stop-loss at ₹678. When price slips below ₹635, tighten stop-loss to ₹652. Exit at ₹620.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)