Last week, Steel Authority of India rested the neckline drawn from its previous support zone which was broken during early March 2017. In line with expectation, the stock witnessed decent sell-off and in that pessimism,SAIL confirmed its breakdown from down sloping trend line drawn from its recent swing low of Rs 67.15.
The said breakdown was confirmed by the daily RSI (14) which support our hypothesis. Hence, we expect the resumption of downtrend in this stock.
Therefore, we advice traders to sell this stock in a range of Rs 77 to Rs 78 with a price target of Rs 63. A stop loss should be placed above Rs 81.50.
Disclaimer: The author Head Technical Research, Way2Wealth Brokers Pvt. Ltd. The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.