Breaking through a key support at around ₹246, the stock of Arvind tumbled 6 per cent on Thursday with above average volume. This fall can trigger fresh selling pressure on the stock and can drag it further. Investors with a short-term horizon can consider selling the stock at current levels.
Since encountering a key resistance around ₹325 in early March, the stock has been on a medium-term downtrend. Short-term trend is also down which has got strengthened after the 12 per cent fall since Monday. The stock trades well below its 50- and 200-day moving averages. The relative strength index on the daily chart features in the bearish zone. The weekly RSI which has just entered this zone from the neutral region reinforces bearish momentum. The short-term outlook is bearish for the stock. It can decline further and reach the price targets of ₹229 and ₹224 in the upcoming sessions. Sell the stock with a stop-loss at ₹244.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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