Syndicate Bank recorded its bull market high of Rs131 in early January 2008. However, the market wide correction has seen the share price declining to 52- week low of Rs46 in July 2008.
Since then, the stock consolidated sideways in a broad range between Rs51-Rs67 levels since August 2008.
This sideways consolidation appears to have taken shape of a bearish head and shoulder formation on the daily charts with the neckline placed at the Rs56 levels. Friday’s closing confirms a break down from the bearish head and shoulder formation.
The measuring implications of the pattern suggest that the share price could decline to levels of Rs45 and below in the forthcoming trading weeks.
We recommend traders to initiate short positions at current levels and on price rallies to resistance levels of Rs58-Rs60 levels for following target of Rs44 and Rs41. A stop loss above Rs65.50 is recommended on all short positions.