Technical Analysis

Voltas (₹438.2): Sell

Yoganand D BL Research Bureau | Updated on May 05, 2020

(File photo)

Investors with a short-term perspective can sell the stock of Voltas at current levels. The stock has been in a medium downtrend since encountering a key resistance in ₹725-735 band in late February this year. After a corrective rally, the stock met with a vital resistance at ₹540 in mid-April and continued to trend downwards. It has been in a short-term downtrend since then.

On Tuesday, the stock tumbled 6 per cent accompanied by above average volume, breaching a key support at ₹465. Also, the stock has plummeted 13 per cent due to selling pressure. With this fall, the stock appears to have resumed the medium-term downtrend.

The stock trades well below its 21- and 50-day moving averages. The daily as well as the weekly relative strength indices feature in the bearish zone, implying bearishness. Besides, the daily and the weekly price rate of change indicators are hovering in the negative terrain implying selling interest.

Overall, the short-term outlook is bearish for the stock. It can continue to trend downwards in the upcoming trading sessions. Targets are ₹420 and ₹412. Traders can sell with a stop-loss at ₹447.

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

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

Published on May 05, 2020
This article is closed for comments.
Please Email the Editor