Syndicate Bank

We recommend a sell in Syndicate Bank from a short-term trading standpoint. It is evident from the charts of Syndicate Bank that after forming a multi-year low at Rs 37.6 in early March it bottomed out. Since then the stock was on an intermediate-term uptrend till it encountered resistance at Rs 100 on June 5.The stock reversed direction from this resistance level and has been on a short-term down trend. A negative divergence displayed in the daily relative strength index (RSI) backs the stock’s trend reversal. Moreover, we notice formation of a bearish engulfing candlestick pattern in the weekly chart signalling a short-term reversal. Recently, the stock breached its intermediate-term up trendline and is trading well below the 21-day moving average. The momentum indicators are heading towards the negative territory. We are bearish on the counter from a short-term perspective. We expect the stock’s decline to prolong until it hits our price target of Rs 63 in the approaching trading sessions. Traders with a short-term perspective can sell the stock while maintaining a stop-loss at Rs 73.

via BL