Syndicate Bank

We recommend a sell in the stock Syndicate Bank from a short-term perspective. It is evident from the charts that the stock was on an intermediate-term uptrend from March 2009 low to October 2009, from Rs 37 to Rs 105. However, experiencing long-term resistance in the band between Rs 100 and Rs 105, the stock started to decline. Though it tried to breach the resistance in December, it failed as it lost bullish momentum. Since October 2009, the stock has been on a medium-term downtrend. Last week the stock fell, penetrating its 21 and 50-day moving averages conclusively. Moreover, it broke through an intermediate-term support level at Rs 85 on January 27, by plunging 4 per cent. The daily and weekly moving average convergence and divergence indicators have signalled a sell. The daily relative strength index (RSI) is hovering in the bearish zone and weekly RSI is slipping towards this zone in the neutral region. Considering the stock's recent breakthrough of key support level we are bearish on it from a short-term perspective. We anticipate it to decline until it hits our price target of Rs 74.5. Traders with short-term perspective can consider selling the stock while maintaining stop-loss at Rs 87.5.
via BL