Today's Pick - Adlabs Films

We recommend a sell in Adlabs Films from a short-term perspective. It is apparent from the charts of Adlabs Films that it has been on an intermediate-term downtrend from its early May high of Rs 789. However, the stock found support at around Rs 342 level in early July and moved up retracing 50 per cent (Fibonacci retracement level) of its prior downtrend. After encountering resistance at around Rs 570, the stock resumed its downtrend by declining. Subsequently, the stock breached the corrective up trendline by declining 5 per cent on August 21. Moreover, on August 28, the stock declined almost 5 per cent on good volume, penetrating the 50-day moving average. The daily relative strength index has entered into the bearish zone and the weekly RSI is on the verge of entering this zone. The moving average convergence and divergence is indicating a sell and is on the brink of entering the negative territory. We are bearish on the stock from a short-term perspective. We expect the stock’s decline to prolong until it hits our price target of Rs 420 in the approaching trading sessions. Traders with short-term perspective can sell the stock, while maintaining a stop-loss at Rs 493.

via BL