IFCI

We recommend a sell in the stock of IFCI from a short-term perspective. It is perceptible from the charts of IFCI that it has been on an intermediate-term uptrend from its March low of Rs 15 till the early September peak of Rs 61. However, after encountering a significant resistance around Rs 60 it changed direction. Since September peak, the stock has been on a medium-term downtrend. On October 22, the stock tumbled almost 4 per cent penetrating the intermediate-term up trendline and 50-day moving average. This decline has reinforced the medium-term downtrend. We notice that there has been a decrease in volume since early September. The daily relative strength index (RSI) is on the brink of entering into the bearish zone from the neutral region and weekly RSI is declining in the neutral region. The daily moving average convergence and divergence (MACD) indicator has entered into the negative territory. Our short-term outlook on the stock is bearish. We anticipate the stock’s fall to prolong until it hits our price target of Rs 47 in the upcoming trading sessions. Traders with a short-term perspective can sell the stock while maintaining a stop-loss at Rs 55.

via BL