The stock has been highly volatile in the last two weeks. Rumours regarding management issues pulled the stock lower by ~40% last Friday.
Though, the stock has recovered thereafter, it continues to remain in a downtrend. In fact in December, the stock doubled from the low of Rs167 and traded above its short term moving averages.
A break below the moving averages last week was accompanied with heavy volumes. The daily RSI as well as the daily MACD are exhibiting negative divergence. We expect the stock to remain under pressure in the coming trading sessions.
In view of the above-mentioned reasons, we recommend traders to SELL the stock at current levels and on rallies to Rs205, for target of Rs175 and Rs165. A stop loss of Rs215 is recommended on all short positions.