Areva T&D - SELL

We recommend a sell in Areva T&D India from a short-term trading perspective. It is apparent from the charts of Areva T&D India that it has been on a medium-term downtrend from its September high of Rs 366. The stock commenced its downtrend from a significant resistance level of Rs 360, forming lower troughs and peaks. However, the stock recently found support at around Rs 142 level (a 52-week low) and witnessed a corrective upmove till Rs 200. This upmove retraced 23.6 per cent fibonacci retracement of its prior down leg and encountered twin resistance (key resistance level at Rs 200 and the down trendline). Subsequently, the stock resumed its medium-term downtrend by tumbling 9 per cent accompanied by above average volume on November 5. The daily relative strength index (RSI) has re-entered the bearish zone from the neutral region and the weekly RSI is featuring in this zone. Our short-term forecast for the stock is bearish. We expect the stock’s fall to prolong further until it hits our price target of Rs 158 in the upcoming trading sessions. Traders with short-term perspective can sell the stock while maintaining a stop-loss at Rs 185.

via BL

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