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The stock of Housing Development & Infrastructure (HDIL) fell almost 5 per cent with above average volume on Wednesday. This fall has emphatically breached a key support at ₹80. Moreover, the stock has tumbled 7 per cent so far this week on selling pressure.
Since encountering a key resistance at ₹108 in July 2016 the stock has been on a medium-term downtrend. The short-term trend is also down for HDIL. In late September, the stock decisively breached its 200-DMA and has been trading well below it. The daily relative strength index has entered the bearish zone from the neutral region. Both the daily and weekly price rate of change indicators are featuring in the negative territory implying selling interest. The probability is high of it breaking the current support at ₹76 and reaching the next support at ₹70.
Trader with a short-term horizon can sell the stock with a stop-loss at ₹79. Targets are ₹73 and ₹70.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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