Today's Pick - SCI

We recommend a sell in Shipping Corporation of India (SCI) from a short-term perspective. It is evident from the charts of the Shipping Corporation of India that it has been on a medium-term downtrend from its May high of Rs 300. The stock declined below the 200-day moving average in late June and has not crossed this line since then.

On August 18, the stock fell 4 per cent penetrating the 21 and 50-day moving averages. With this decline, the stock has resumed its medium-term downtrend. The daily relative strength index is declining in the neutral region. The daily moving average convergence and divergence is reinforcing bearishness.

We are bearish on the stock in the short-term. We anticipate the stock to decline further until it hits our price target of Rs 200 in the forthcoming trading sessions. Traders with short-term perspective can sell the stock while maintaining a stop-loss at Rs 235.

via BL