Hemen Kapadia, Technical Analyst at chartpundit.com has recommended selling Shriram Transport Finance with a stoploss of Rs 700.
Kapadia told CNBC-TV18, "Shriram Transport Finance Corporation is one of the weaker stocks around. We have seen a monthly MACD sell which would obviously mean weakness over the longer term. In the medium-term though after a very short fall it has retraced almost 50% of this fall indicating that the upside is probably capped and coming to the slightly shorter term the stock has taken 10 trading sessions moving sideways in what is threatening to be a distribution pattern."
"We have almost given that downward breakout today which could sort of exacerbate further. So keeping that in mind and also followed by the fact that the mechanical indicators are beginning to look weak indicating that a downward bias seems to get stronger everyday. One can sell Shriram Transport Finance at Rs 685 with a stoploss of Rs 700 and target of Rs 665 valid probably for a week or so," he said.
