Indiabulls Real Estate

We recommend a sell in the stock of Indiabulls Real Estate from a short-term perspective. It is evident from the charts that the stock had been on an intermediate-term uptrend from March low Rs 83 until the October high of Rs 298. However, after encountering long-term resistance around Rs 300, the stock reversed direction triggered by negative divergence in the daily moving average convergence and divergence (MACD) indicator. The stock’s intermediate-term uptrend line was conclusively penetrated in late October and it continued to decline. Thereafter, the stock reinforced its short-term downtrend by breaching 21 as well as 50-day moving averages and is currently trading well below them. The short-term down trendline of the stock is intact. The daily relative strength index has entered into the bearish zone and daily MACD is featuring in negative territory. We are bearish on the stock from a short-term perspective. We expect it to decline further until it hits our price target of Rs 200 in the upcoming trading sessions. Trader with short-term horizon can sell the stock, while maintaining a stop-loss at Rs 235.

via BL