On the daily charts, Bata India is close to its critical support levels of Rs90. Moreover, the stock has broken below its short-term moving averages.
We expect the weakness to continue in the near term with daily RSI also showing a downward trend. A fall below Rs90 is likely to infuse fresh momentum on the downside and is likely to take stock towards the levels of Rs85 and below.
Based on above technical evidences, we recommend traders to SELL the stock between the levels of Rs91-93 with an initial target of Rs85. It is advisable to maintain a stop loss of Rs95.