The stock of Sesa Sterlite tumbled 4 per cent with good volumes, breaking a key support at around ₹268 on Tuesday. This breakthrough reinforces the short-term downtrend and gives traders an opportunity to sell the stock. After an accelerated rally in May, the stock met with resistance around ₹315 in early June. Since then, the stock has been on a short-term downtrend. The stock conclusively breached its 21- and 50-day moving averages in mid-September and is trading well below these levels.
The indicators on the daily chart are featuring in the bearish zone backing the stock’s downtrend. The indicators in the weekly chart have reversed downwards and are moving in line with the stock-price. With the decisive breaking of the key support, the stock can hurtle lower as there is no support in the vicinity. The short-term outlook is bearish. The downtrend can extend and reach the price target of ₹248 and then ₹243 in the forthcoming trading sessions. Traders can sell the stock with a stop-loss at ₹264.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)