Indiabulls Real Estate : Sell : IDBI Capital

This stock was going through a process of forming different sets of a fractal rounding pattern. But an inability to complete the next set of pattern near 340 led the prices to slip lower on account of heavy profit booking since Dec 2009. The rising attempts since then turned futile as the stock maintained a steady sequence of lower tops & bottoms.

Higher degree charts suggests that the stock has also failed to retrace even the first important level (38.2%) of Fib retracement and has hugely znderperformed the overall markets as its peers confirming inherent weakness in the underlying trend. However the ability to hold above an old value area support at 165 levels (formed in Nov 08) helped the trend to keep some buying intact and suggested presence of buyers near these levels.

With last week’s fall, price slipped below the said support and gave an added confirmation of the trend picking up on downside. Oscillators like weekly RSI is turning down afresh from 40 levels and is considered as a negative signal. We suggest selling this stock now or on rallies to 165 with a stoploss of 10 points. Targets 135 / 121.

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Tags: Free Share Tips, Indiabulls

Category: Broker tips