Investors with a short-term perspective can consider selling the stock of Just Dial at current levels. Following an intermediate-term downtrend, the stock fell to an all-time low of ₹318 in late December 2016 and found support. Since then, it has been on a medium-term uptrend. However, after regaining 50 per cent of the Fibonacci retracement level of the prior downtrend, the stock encountered significant resistance in the ₹600-620 band in early March.
Triggered by negative divergence in the daily relative strength index, the stock changed direction recently. This reversal was strengthened on Wednesday with the stock tumbling 5 per cent, breaching the support level at ₹580. The daily relative strength index has entered the neutral region from the bullish zone. The short-term outlook is bearish. It can extend the fall and reach the price targets of ₹542 and ₹530 in the ensuing trading sessions. Sell the stock with stop-loss at ₹577.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)