We recommend a sell in the stock of Voltas from a short-term horizon. It is evident from the charts of the stock that ever since encountering long-term resistance in the band between Rs 250 and Rs 260, the stock has been trending southwards, forming lower tops and lower bottoms. From this July peak of Rs 169, the stock has been on a medium-term downtrend.
On Monday, the stock plunged almost six per cent with above average volumes, emphatically breaching through its immediate support at around Rs 110. The stock is currently moving towards its next key support at around Rs 100. Both daily as well as weekly relative strength indices are featuring in the bearish zone.
Daily moving average convergence divergence indicator has signalled a sell and is hovering in the negative territory implying downward momentum. The price rate of change indicator is featuring in the negative area indicating selling interest.
We are bearish on the stock from a short-term perspective. We anticipate its downtrend to continue and reach our price target of Rs 102 or Rs 98 in the approaching trading sessions. Traders with short-term perspective can consider selling the stock with stop-loss at Rs 108.