The stock hit a 52-week low of Rs792 towards the end of November’08. Thereafter, it witnessed a rally to a high of Rs1,125 in first week of January’09.
The recent peak proved to be major resistance for the stock as seen in the past. Since November’08 the stock has been trading along with the support of its short-term trendline.
However, last week, it closed below the ascending trendline for the first time in two months. Since then, the stock has struggled to close above its support line.
Other momentum oscillators are in strong sell mode, suggesting build-up of momentum on the down side.
Keeping in mind the above-mentioned technical evidences, we recommend traders to SELL the stock at current levels and on rallies to the levels of Rs1,015 with stop loss of Rs1,030 for an initial target of Rs940.