Pantaloon Retail - SELL

We recommend a sell in Pantaloon Retail India from a short-term perspective. From the charts of the Pantaloon Retail we observe that it has been on a long-term term downtrend from its all-time high of Rs 875, marked in January. The stock has been recording lower peaks and troughs since this peak. On September 15, the stock decisively penetrated the support level Rs 325 by tumbling almost 5 per cent with heavy volume. There was yet another sharp 6 per cent decline in the stock on September 25, with above average volume. The daily and weekly relative strength indices are hovering in the bearish zone. The moving average convergence and divergence is declining in line with the stock price, in negative territory. We are bearish on the stock from a short-term horizon. We anticipate Pantaloon Retail to decline further until it hits our price target of Rs 246 in the forthcoming trading sessions. Traders with short-term perspective can sell the stock while maintaining a stop-loss at Rs 288.