Indiabulls Real Estate Technical Analysis

We recommend a sell in the stock of Indiabulls Real Estate from a short-term perspective. It is apparent from the charts that the stock had been on an intermediate-term uptrend from its March 2009 low of Rs 83 till it encountered key resistance at Rs 298 in October 2009. However, the stock reversed direction and started to decline. Since October the stock has been on a medium-term downtrend. While trending down, it penetrated the intermediate-term uptrend-line and the key support at Rs 250 in end-October. The stock is trading well below its 21, 50 and 200-day moving average compression occurred around Rs 220. On January 25, the stock fell almost 4 per cent, breaching the immediate support level of Rs 200. The daily relative strength index (RSI) is featuring in the bearish zone and weekly RSI is on the brink of entering this zone from the neutral region. Besides, the daily moving average convergence and divergence indicator has re-entered into negative territory and weekly MACD is entering this territory. Our short-term outlook is bearish for the stock. We expect it to decline until it hits our price target of Rs 172. Traders with short-term perspective can consider selling the stock while maintaining stop-loss at Rs 201.

via BL