The stock can be sold at current levels and on the rise towards Rs 263 with a stop loss above Rs 274 for a target of Rs 230.
Ujjivan Financial Services witnessed a sharp decline from May high of Rs 435 last year to a low of Rs 166 in October. Since then, the stock has retraced 50 percent of the decline and seeing a reversal. The previous support level of Rs 285 is now acting as resistance for the stock.
The price has given a breakout on the downside from the Bollinger Band with the expansion of bands indicating a continuation of the trend in the direction of breakout on the daily chart.
The RSI on the weekly chart has given a negative crossover with its average last week. MACD line on the daily chart has moved below the equilibrium level of zero.
Thus, the stock can be sold at current levels and on the rise towards Rs 263 with a stop loss above Rs 274 for a target of Rs 230.
The author is Head of Technical and Derivatives at Sanctum Wealth Management.Disclaimer: The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.