The stock corrected sharply from the levels of Rs327 in the second week of October 2008 to a low of Rs214 in the last week of October 2008. Since then, it rallied smartly to a high of Rs303 in the second week of November 2008 before correcting back to Rs270 levels.
It has seen good support at the upward sloping trendline since October-end 2008. On Tuesday, the stock fell below the short-term trendline and also closed below its near and short-term averages.
The daily MACD is already in sell mode suggesting build-up of momentum on the downside. Based on above-mentioned technical evidences, we recommend traders to SELL the stock up to Rs250 levels for target of Rs225 and Rs220 levels. A stop loss of Rs255 is recommended on all short positions.