On the daily chart, the stock has formed an ascending triangle pattern. It presents great opportunity for the traders to jump in on the downtrend.
Overall volumes have also weakened during the pattern’s formation and have picked up on the breakout. An occurrence of this event indicates further selling and continuation of the downtrend.
The stock has been moving back and forth within the context of symmetrical triangle from the last week of October in the range of Rs230-291. A break below Rs228 could see the stock testing levels of Rs215 and below.
The daily RSI has also shown a reversal from a neutral position along with the price movement. We recommend traders to SELL the stock for target of Rs212. It is advisable to maintain a stop loss of Rs238 on all short positions.