The stock is currently trading at its 52-week low, displaying signs of weakness. Despite the market-wide correction witnessed in the last three months, Pantaloon Retail managed to hold on the Rs194-200 support levels.
However, this week the crucial support levels were breached. Weekly chart suggest that the price movement since second week of October 2008 till last week occurred in a well defined rectangular pattern in the range of Rs255-195.
Friday’s weekly closing price confirms a break down from this channel formation as highlighted in the above chart. Moreover, the stock has closed below its short-term moving averages.
In view of the above-mentioned technical evidences, we recommend traders to SELL the stock at current levels and on rallies to Rs175, for target of Rs152 and Rs140. A stop loss of Rs182 is recommended on all trading short positions.