Pritesh Mehta, senior technical analyst at IIFL told CNBC-TV18, "CESC had a terrific rally. It has started from the levels of Rs 330-340 and then it went to Rs 470 odd levels, but the rally has stalled there, in fact it made a fairly bearish pattern."
"Now it is giving signs of a clear distribution. Whenever momentum stocks start to fall and make a distribution pattern, it tells us that the decline in the counter is going to be big. CESC could see a sharp decline in the next couple of trading sessions. We can see a target of Rs 400 also," Mehta added.
At 14:11 hrs CESC was quoting at Rs 419.50, down Rs 12.05, or 2.79 percent.
The share touched its 52-week high Rs 470.90 and 52-week low Rs 252.70 on 01 January, 2014 and 28 March, 2013, respectively.
Disclosure: He might have recommended above stock to his clients but no personal holdings.
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