The stock has corrected sharply from the recent peak of Rs202 in January 2009 to the present levels. In last month, every recovery attempt by the stock has faced stiff resistance around its short-term moving averages.
On Wednesday, the stock fell below the short-term trendline and also closed below its near & short term averages. The daily MACD is already in sell mode, suggesting build-up of momentum on the downside.
Based on above events, we recommend traders to SELL the stock on rallies to levels of Rs144 for target of Rs132.
A stop loss of Rs148 is recommended on all short positions. Traders can again initiate short positions on a close below Rs135.