Today's Pick - Indusind Bank

We recommend a sell in IndusInd Bank from a short-term perspective. It is evident from the charts that the stock was on a medium-term uptrend between late March 2008 and early May 2008, from its a low of Rs 68 to an high of Rs 105. After finding resistance around Rs 105, the stock reversed direction and began to decline.

On May 12, the stock breached the medium-term up trendline. The stock witnessed moving average compression at around Rs 90 levels and has now penetrated these average lines. The daily and the weekly momentum indicators are declining in the neutral region.

The stock appears to have resumed the long-term downtrend and we are also bearish on it in the short-term. We expect the stock's down move to continue until it hits our price target of Rs 74 in the upcoming trading sessions. Investors with short-term perspective can sell the stock while keeping the stop-loss at Rs 90.

Via BL