Trade Idea of The Day - Shriram Finance Ltd Target Rs.30 - Religare Broking Ltd
Shriram Finance Ltd
Shriram Finance Ltd BUY 26 MAY 920 PUT Entry Range 15 – 17 Target Range 30 Stop Loss 9
Rationale
• On the daily chart SHRIRAM has witnessed a decisive breakdown from its distribution phase, where the price was consolidating in a triangular formation near the 1000 zone. The breakdown indicates weakening buying interest and increasing selling pressure at higher levels.
• From the technical front prices had slipped below its 50-DEMA, while sustained trading near lower bands reflects bearish market structure. The RSI has also drifted below the 40 mark, confirming loss of momentum.
• On the momentum front, MACD histogram witnessed a bearish crossover with rising trading volume, highlighting continuation of downside pressure in the near term.
• As long as the stock prices trades below the 950-960 resistance zone, negative sentiment is likely to persist, with immediate downside support seen near 880 and then 850 levels.
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