Rolta India

We recommend a sell in the stock of Rolta India from a short-term perspective. It is evident from the charts that the stock's intermediate-term uptrend which started in March 2009 low of Rs 40.7, encountered significant resistance in the band of Rs 200 and Rs 210 in mid-January. Subsequently, the stock reversed direction triggered by the negative divergence displayed in the weekly moving average convergence and divergence, and the long-term resistance. Since then, the stock has been on budding short-term downtrend. While trending down, the stock conclusively penetrated the intermediate-term uptrend-line as well as 50-day moving average by tumbling 5 per cent on February 5. The selling pressure continued and it fell 3 per cent in the last trading session, reinforcing the downtrend. With this, the daily relative strength index lost strength and entered the bearish zone and weekly RSI is slipping towards this zone in the neutral region. The daily MACD has entered the negative territory. Our short-term forecast is bearish for the stock. We expect it to decline until it hits our price target of Rs 161. Traders with short-term perspective can consider selling the stock while maintaining stop-loss at Rs 188.

via BL