India Infoline puts SELL on IVRCL Infrastructure

India Infoline puts SELL on IVRCL Infrastructure

Last week, the stock surged smartly on higher volumes. However, on Monday, it appears to have run into strong resistance area of Rs151.

Moreover, it gave a close below the support of its short-term trendline from Rs57 to Rs133, suggesting that a short-term cycle top has been formed at Rs150 levels on the daily chart.

Deeper decline is still possible to the levels of Rs120 and below. The daily oscillators are in sell mode while the candlestick patterns formed in the recent past support the bears.

The volume activity has been consistently strong in the recent past and could get better in case of a breakdown. Based on above technical evidence, we recommend traders to SELL the stock. It is advisable to maintain a stop loss of Rs142 on all short positions.