The outlook for the stock of Indiabulls Housing Finance is bearish. The stock had tumbled 9.6 per cent on Monday and has broken below the key near-term support level of ₹180. Prior to this fall, the stock was consolidating between ₹180 and ₹195 for some time. Immediate resistance is at ₹180. Next strong resistance will be in the ₹190-₹195 region.
The stock can fall to ₹140 initially. A break below ₹140 will then trigger a further fall to ₹110-₹100 eventually in the coming weeks. Traders can go short at current levels. Accumulate shorts on rallies at ₹176 and ₹188. Keep the stop-loss at ₹203. Trail the stop-loss down to ₹162 as soon as the stock falls to ₹151. Move the stop-loss further down to ₹134 as soon as the stock touches ₹128. Book profits at ₹122. The downside pressure will ease only if the stock rises above ₹185.
However, the stock will have to rise past ₹200 decisively in order to turn the outlook bullish. In such a scenario, the stock can move upto ₹220-₹230 and will negate the danger of seeing ₹110-₹100 on the downside. However, the chances of breaking above ₹200 is very less.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)