Areva T&D India

Investors with short-term trading perspective can consider selling Areva T&D India. The stock has been trundling downward since the peak of Rs 385 recorded in June 2009. This decline is however received medium-term support around Rs 255. The rebound from this level from February 24 was arrested at the key short-term resistance at Rs 320 and the stock is currently in a down-trend over the last couple of weeks. Moving average convergence divergence oscillator in the daily chart is signalling a sell for the first time since March 3 signalling a short-term reversal in the stock. The 10-day rate of change oscillator has also declined in to the bearish zone implying that the stock could move lower in the days ahead.

The medium-term trend in the stock is sideways but strong reversal from the resistance zone around Rs 320 can pull the stock lower towards its February lows. Short-term investors can therefore sell the stock with the stop at Rs 306. Downward targets for the stock are Rs 298 and Rs 294.

via BL