The stock of Cairn India broke through a key long-term support at ₹273, tumbling 3.6 per cent with above average volumes on Thursday. This fall has strengthened the stock’s intermediate-term downtrend that has been in place from the June peak of ₹385. Investors with a short-term horizon can sell the stock at current levels.
It is hovering well below its 21 and 50-day moving averages. The indicators such as relative strength index, moving average convergence divergence and price rate of change on the daily chart are featuring in the bearish zone. Further, there is an increase in daily volume, which strengthens the downtrend.
The short-term outlook for Cairn India is bearish. It can extend its current fall and touch the price target of ₹251.5 and then ₹246 in the forthcoming trading sessions. Traders with a short-term perspective can sell the stock with a stop-loss at ₹268 levels.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)