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The outlook for the stock of India Glycols has turned bearish. The stock tumbled 6 per cent on Tuesday breaking below an important support level of ₹920.
The strong upmove that was in place since late September failed to breach the psychological level of ₹1,000. The consolidation below ₹1,000 and the subsequent sharp fall, over the last one week, gives good sign of a trend reversal in the stock. Strong resistance is seen in the ₹920-₹945 region. Any intermediate bounce can be capped at ₹945. The stock is now vulnerable to extend the fall to ₹770 and even ₹680 in the coming days. Traders can go short at current levels and also accumulate on rallies at ₹895. Stop-loss can be placed at ₹935.
Book profits at ₹770. Trail the stop-loss down to ₹835 as soon as the stock moves down to ₹805. Move the stop-loss further down to ₹810 as soon as the stock falls to ₹795. The stock will need a strong rise past ₹945 in order to turn the outlook bullish.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)
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