The stock rallied smartly from a low of Rs350 in early July 2008 to a high of Rs576 in August 2008. Since then, the stock has been trading sideways in a range between Rs460-570 levels.
On Monday, the stock fell sharply from the above pattern. The price movement from July 2008 till date has taken the shape of a head and shoulders pattern which is bearish in nature. The daily RSI as well as the daily MACD are exhibiting negative divergence, indicating weakness in the trend.
The measured implication of break down from this pattern will see the stock heading towards the target of Rs400 and Rs380 levels in the coming sessions. In view of the above mentioned technical evidences, we recommend traders to SELL the stock for target of Rs400.