Udaan - Sell Shriram Transport Finance Company Ltd:: Edelweiss

Please Share::

�� India Equity Research Reports, IPO and Stock News Visit http://indiaer.blogspot.com/ for complete details ��

��

-->

The chart of SRTRANSFIN shows that it is in a downtrend. Prices broke below its 200 DMA in the month of April 2015 and has never looked back. The stock has fallen more than 20% since then.

Price made a new 52 week low last month and broke its crucial support placed at 840-855 range. Since last one month the stock has been trading below the above mentioned level. It has broken from a narrow consolidation range of 800-860 in today’s session confirming further weakness. The daily ADX indicator is currently placed above 40 mark whereas –DI indicator is now above 30 mark which indicates accelerated momentum in a downtrend.

The comparative chart of SRTRANSFIN versus Nifty shows clear underperformance of the stock as it has fallen more than 20% in last one year versus a 4% gain by the index.

Based on the above evidences on price chart, we expect prices to decline from current levels and move lower towards 680 / 665 levels in the short and medium term.

We recommend selling June Futures in the range of 775-810 for Target of 680 / 665.

LINK

https://www.edelweiss.in/research/Udaan--Sell-Shriram-Transport-Finance-Company-Ltd/10006068.html