Venus Remedies

We recommend a sell in the stock of Venus Remedies from a short-term perspective. It is perceptible from the charts of the stock that it was on an intermediate-term uptrend between April and early September, from Rs 145 to Rs 312. Encountering long-term resistance in the band of Rs 300 to Rs 310, the stock changed it trend. Since then, it has been on a medium-term downtrend. On September 10, the stock tumbled 8 per cent with a downward gap, reinforcing this trend. Subsequently, it continued to trend south, penetrating intermediate-term up trendline as well as support at Rs 250. The stock is trading well below its 21-and 50-day moving averages. The daily relative strength index has entered in the bearish zone and weekly RSI is slipping in the neutral region. Besides, the daily moving average convergence and divergence indicator has entered the negative territory. We are bearish on the stock from a short-term perspective. We expect it to decline until it hits our price target of Rs 216. Traders with a short-term perspective can sell the stock while maintaining a stop-loss at Rs 252.

via BL