We recommend a sell in the stock of Arvind from a short-term perspective. It is evident from the charts of the stock that it had been on a medium-term uptrend from its August low of Rs 61.9 until it encountered resistance at around Rs 110 in late October. However, triggered by negative divergence displayed in daily relative strength index as well as moving average convergence divergence indicator coupled with key resistance levels at around Rs 110, the stock changed its direction downwards.
The stock started to decline and it tumbled 5.2 per cent each on November 9 and 14. Moreover, the stock has breached its medium-term uptrend line and key support level at Rs 100, confirming the trend reversal. Daily RSI has entered into the bearish zone from the neutral region and weekly RSI has entered into the neutral region from the bullish zone signalling downward momentum.
Daily price rate of change indicator is featuring in the negative territory, implying selling interest. We are bearish on the stock from a short-term perspective. We anticipate the stock's decline to prolong until it reaches our price target of Rs 94 or Rs 91 in the forthcoming trading sessions. Short-term traders can consider selling the stock while maintaining stop-loss at Rs 100.