"We recommend traders to build a short position in the range of Rs 735 to Rs 745 with a price target of Rs 680 and Rs 650 respectively," says Aditya Agarwal, Head, Technical Research at Way2Wealth Brokers.
Looking at the weekly charts, Bharat Forge is struggling to surpass its previous all-time high placed at Rs 798 and formed a lower top during early May 2018.
The weekly RSI (14) is struggling to cross 60 levels which is a bearish indication. On an hourly chart, momentum indicators suggest that the stock is poised for a further correction.
Hence, we recommend traders to build a short position in the range of Rs 735 to Rs 745 with a price target of Rs 680 and Rs 650 respectively. A stop loss should be placed above Rs 775 on a daily closing basis.Disclaimer: The author Head, Technical Research, Way2Wealth Brokers Pvt. Ltd. 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.