The stock of Wockhardt plunged 10 per cent with good volume on Monday, decisively breaking below a key support at ₹300 as well as the 200-day moving average line. Investors with a short-term perspective can sell the stock at current levels.

The stock took support from its long-term base level of ₹233 in early January this year and started to trend upwards. After a short-term uptrend, the stock had encountered a key long-term resistance at ₹400 in early February. Triggered by negative divergence in the daily RSI and the price rate of change indicator, the stock changed direction and began to decline. Initially, the stock breached a key support at around ₹350 in late February.

The recent fall has conclusively breached the 50- and 200-DMAs and the stock trades well below these moving averages. The daily RSI has entered the bearish zone from the neutral region and the weekly RSI is hovering in the neutral region. Besides, the daily price rate of change indicator features in the negative terrain implying selling interest.

Overall, the short-term outlook is bearish for the stock. It can continue to trend downwards and reach the price targets of ₹260 and ₹255 in the upcoming trading sessions. Traders can sell the stock with a stop-loss at ₹278 levels.

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