PTC India

We recommend a sell in PTC India from a short-term perspective. The uptrend from the October 27 trough of Rs 43 was arrested at the 200-day simple moving average at Rs 75 and the stock has been declining since. The stock is currently halting at the short-term support at Rs 55. But the chart pattern over the last five sessions suggests that the stock can decline below this support towards the October lows again. 10-day rate of change oscillator is forming lower peaks and troughs in the negative zone and the 14-day relative strength index is declining after a failure to cross 43. The oscillator readings denote that the short-term outlook for the stock is negative. Investors can sell the stock with a stop at Rs 60.5. We expect a decline to Rs 50 in the upcoming sessions.