India Infoline puts SELL on Bhel

India Infoline puts SELL on Bhel

Bhel recorded its 52-week low of Rs984 levels in October 2008. The share price witnessed a smart pull back rally thereafter to record a high of Rs1,527 in November 2008, before correcting back to Rs1,160 levels.

The price movement since October 2008 has occurred along the up-ward support trend line. However, Friday’s sharp decline has seen the share price giving a breakdown from the up-ward sloping support trend line.

The daily RSI is already in strong sell mode, whereas the daily MACD has also generated a fresh sell signal, suggesting build-up of momentum on the down side. The share price has closed below all its key daily and weekly averages placed between Rs1,325-1,360 levels.

These are expected to act as resistance levels for the share price on any pull back attempts from the current levels.

Keeping in mind the above-mentioned technical evidences, we recommend traders to SELL the stock at current levels and on pull back to resistance of Rs1,325-1,340 levels with stop loss placed at Rs1,385 levels for target of Rs1,240 and Rs1,200.