The stock has been witnessing selling pressure since last few months. The trend in the stock now can be defined as ” DOMINANT BEARISH”. Any pullback may be utilized for creating short positions. Here is a detailed technical analysis on the stock.
I have plotted RSI and candle sticks on the above chart. The recent selling pressure has pushed the RSI into deep over sold areas below at 25 levels. Well oversold for me is sellers getting active! So the stock may witness more pains. A dead cat bounce may not be ruled out, as oversold levels often leads prices to push back. This will be a opportunity to create shorts in the stock. Well aggressive players can go in for short at CMP and add further at pullback. The “JL” pivot is placed at 3100, which may act as resistance and positions can be created near these levels.
To further enhance our probability lets have a look at the ADX system. Clearly visible the -DI is dominant and ADX is well placed above 25 levels, indicating the dominance of the shorters in the counter. ADX has pulled down a little bit, but it does not suggest that the selling is over, whereas it suggests a cool down or profit booking phase as of now.
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Once the stock starts to trade below 2800 levels it may be pushed down to 2705 – 2550 levels. Whereas if a sustenance above 3150 is achieved, then till bearish analysis may be proven wrong.
Before jumping into the stock with your money I request you o go through the DISCLAIMER here. I may have a position in the stock.
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