Nagarjuna Construction Company

Investors with a short-term trading perspective can sell the stock of Nagarjuna Construction Company. The stock faces strong medium-term resistance at Rs 185 and it has failed to move past it despite multiple attempts to breach this level since last October. The stock reversed lower from the peak of Rs 185 on April 9 and it has been in a down-trend since then.

The stock's down-move has accelerated over the past three sessions and it has lost 7 per cent in this period. The daily momentum indicators have moved into the neutral zone from bullish territory. The 10-day rate of change oscillator is on the brink of moving into the bearish zone while the moving average convergence oscillator is about to signal a sell. The stock could move lower to Rs 162 or Rs 155 in the days ahead. Short-term investors can sell the stock with stop at Rs 173.

Traders can consider shorting the near month future of Nagarjuna Construction with the stop at Rs 171.5 and the targets of Rs 164.5 and Rs 162.