Investors with a short-term perspective can sell the stock of Deepak Fertilisers & Petrochemicals Corporation at current levels. The stock has been on an intermediate-term uptrend since it took support at around ₹60 in mid-March this year and until it recorded a 52-week high of ₹192 (unadjusted) in August.
Subsequently, the stock changed direction and has been in a short-term downtrend since then. While trending down, the stock had decisively breached the 21- and 50-day moving averages in late September. On Thursday, the stock plummeted 5 per cent with good volume, breaching a key support at ₹142. The stock trades well below the 21- and 50-DMAs. The daily relative strength index has entered the bearish zone from the neutral region and the weekly RSI is charting downwards in the neutral region.
Further, the daily as well as the weekly price rate of change indicators are hovering in the negative terrain, implying selling interest.
Overall, the short-term outlook is bearish . It can continue to trend downwards and reach the price targets of ₹133 and ₹130 in the ensuing trading sessions. Traders can sell the stock with a stop-loss at ₹142 levels. (Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)