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The outlook for the stock of Castrol India is bearish. The stock fell 1.8 per cent on Tuesday breaking and closing below the 21-DMA at ₹379. The fall was accompanied by strong volume which may strengthen the downmove. The 100-DMA resistance at ₹389 halted the corrective rally in this stock that had begun from the May low of ₹363.7.
The stock made a high of ₹391.5 last week and has reversed lower from there. It has been falling consecutively over the last three trading sessions and is down over 3 per cent. This continuous fall suggests that the overall downtrend is intact. There is strong resistance in the band between ₹381 and ₹383. Rallies to this resistance zone may find fresh selling interest in the stock. A fall to ₹365 or even ₹360 is possible. Traders with a short-term perspective can go short. Stop-loss can be placed at ₹382 for the target of ₹365. Revise the stop-loss lower to ₹372 as soon as the stock moves down to ₹368.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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