Sell Siemens April future; target Rs 725: IIFL

“Siemens (on the daily chart), seems to have appeared at an interesting juncture i.e. breaking below the neckline of a bearish Head and Shoulders formation. The bearish Head and Shoulders occurs when the stock reverses sharply and breaks its neckline while in a bullish trend. We believe Siemens will head lower after it broke its neckline (critical support level) at Rs 758. During this week, the stock has slipped below its 50-DMA for the first time since January 2012. This further justifies our view that the stock is under pressure and will slide in the near future. We recommend traders to sell Siemens April Futures Rs 757 with a stop loss of Rs 771 for a target of Rs 725. (Duration 5 days),” says IIFL research report.

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