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The stock of Tube Investments of India has potentially turned the trend bearish as it has breached a crucial support.
During 2019, the stock was largely consolidating between ₹325 and ₹420 post a rally that lifted the price from ₹215 levels. Notably, in March 2019, it had registered a fresh high of ₹434 and then started to consolidate. The broad sideways trend lasted till October. In early November, the stock broke out of the range and resumed its uptrend; it marked its new lifetime high of ₹577 in February 2020. However, the stock witnessed an abrupt price reversal and marked a fresh four-month low of ₹400 last Friday.
Currently it is trading below a key support at ₹485 and the price has slipped below both 21- and 50-DMAs. Also, the relative strength index and the moving average convergence divergence indicators on the daily chart are exhibiting bearish signs. Hence, traders can short the stock with stop-loss at ₹485 for a target of ₹435.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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