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The stock of Housing Development Finance Corporation Limited (HDFC Ltd.) has slipped below the important support of ₹1,660 today; it is currently hovering around ₹1,600. The overall trend has been bearish and hence, traders can short the stock for short-term.
The stock, which has been in a downtrend for the past one month, registered its fresh one-year low of ₹1,490 last Thursday; it is also the lowest price since April 2017. The recovery towards the end of the last week lifted the stock to ₹1,775 level, which is a considerable resistance. Unable to move beyond that level, the stock has given up its recent gains and is weakening today. It breached the support of ₹1,660, opening the door for further weakness. Corroborating the bearish stance, the Moving Average Convergence Divergence (MACD) indicator in the daily chart has continued to deepen into the negative territory.
Since the major trend is negative and there are indications of further decline, traders can go short in the stock with stop-loss at ₹1,640. Potential short-term target can be ₹1,490.
Supports: ₹1,490 and ₹1,425
Resistances: ₹1,640 and ₹1,660
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