Today's Pick - Sterlite Industries

We recommend a sell in Sterlite Industries India from a short-term perspective. It is evident from the charts of Sterlite Industries India that it has been on a long-term downtrend from its all-time high of Rs 1,140 (recorded in early December 2007). In early June 2008, the stock declined breaching the 50 and 200-day moving averages. Moreover, in the recent times, the stock tested the key support level Rs 700 and broke out by tumbling almost 8 per cent on July 3 with good volume. The daily and weekly relative strength indices are featuring in the bearish zone. In line with the stock price, the moving average convergence and divergence (MACD) is also declining in the negative territory. The medium-term down trend of the stock that commenced from Rs 950 level is intact. We are bearish on the stock in the short-term. We expect the stock’s decline to continue until it hits our price target of Rs 565 in the approaching trading sessions. Traders with short-term perspective can sell the stock while maintaining stop-loss at Rs 653.

via BL