Mahanagar Gas’s stock, after hitting a record high of ₹1,579 in early March, lost momentum and has been exhibiting weakness on the chart. While no threat has appeared until now for the long-term uptrend, the recent price action hints at a corrective decline. The case for a moderation in price strengthened after the stock slipped below the support at ₹1,380 a couple of sessions back.
The nearest notable support levels are at ₹1,300 and ₹1,210 – its 50-day moving average. The chart shows signs of a decline, particularly on Thursday. So, traders can short the stock now at around ₹1,380. Place initial stop-loss at ₹1,420. When the price touches ₹1,330, tighten the stop-loss to ₹1,380. Book profits at ₹1,300. Refrain from trading if the stock opens above ₹1,400.
Today’s Stock Recommendation: 9th May 2024
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)