Idea Cellular

We recommend a sell in Idea Cellular from a short-term perspective. It is evident from the charts of the stock that it has been on medium-term downtrend from its June high of Rs 91.7. In early September, the stock penetrated its intermediate-term uptrend-line that was in place from March low of Rs 41. In the same period it also breached its 21- and 50-day moving averages and is trading below them. Moreover, on October 5, the stock tumbled 4 per cent with above average volume, breaking through medium-term support of Rs 73. The daily momentum indicators have entered the bearish territory and weekly indicators are slipping towards this territory. We are bearish on the counter from a short-term horizon. We expect the stock’s decline to prolong until it hits our price target of Rs 63.5. Traders with a short-term perspective can sell the stock while maintaining a stop-loss at Rs 74.5.

via BL