The short-term outlook for the stock of Spandana Sphoorty Financial is bearish. The stock has been coming down consistently since April end. The sharp 6 per cent fall on Monday can intensify the selling pressure going forward. Immediate resistance is at ₹360. Then cluster of resistances are poised in the ₹380-₹400 region. As such the upside is likely to be capped at ₹400 incase if the stock manages to rise above ₹360 from here.
The stock now looks vulnerabl to fall towards the ₹310-₹300 support zone from here. Traders can go short at current levels and also accumulate shorts at ₹358. Keep the stop-loss at ₹378. Trail the stop-loss down to ₹348 as soon as the stock falls to ₹338. Move the stop-loss further down to ₹331 as soon as the stock touches ₹325 on the downside. Book profits at ₹312. In case if the stock breaks below ₹300, the fall can extend up to ₹260-₹250 over the medium-term. From a big picture, the stock will have to see a sustained rise past ₹400 to turn the outlook poisitive. But that looks less likely as seen from the price action in the stock.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)