Today's Pick - Raymond

We recommend a sell in Raymond from a short-term perspective. From the charts of Raymond, we see that the stock has been on a medium-term downtrend from the resistance level at around Rs 474 (met in early January 2008). The stock found support at Rs 300 (late January) and was on a sideways consolidation between Rs 300 and Rs 350 for more than six weeks. This support, on March 10, was broken when the stock fell below Rs 300. Having broken this support, the stock now appears to have resumed its medium-trend downtrend. Further, the daily momentum indicator is featuring in the bearish zone and the weekly momentum indicator is on the verge of entering this zone. Besides, the daily moving average convergence divergence also suggests bearishness; it is featuring in the negative territory. The stock is trading well below the 50- and 200-day moving averages. Our short-term outlook for the stock is bearish. We expect the stock to decline further to our target price level of Rs 255 in the short-term. Investors with a short-term perspective can sell the stock, while keeping the stop-loss at Rs 315.

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