On the daily chart, the stock has broken below the sideways consolidation pattern. It presents great opportunity for the traders to jump in on the downtrend. An occurrence of this event indicates further selling and continuation of the downtrend.
Following a gap-up opening on 18th May 2009, the stock had been moving back and forth within the range of Rs800-654 till the last week.
We don’t expect the recent peak (high end of the trading range) to be tested in future any time soon. In fact, technical indicators suggest more downside from the current levels.
Based on above observations, we recommend traders to SELL the stock in the range of Rs622-638 with a stop loss of Rs654 for target of Rs595.