The stock of United Breweries can be considered for a short-term sell trade as it looks bearish post slipping below some key supports in the past few trading sessions.
When the overall market reversed after witnessing a deep fall in March 2020, the stock of United Breweries too started to move up. However, the recovery faced setbacks until October, with the stock not being able to sustain the rally.
However, in October, it started to move up steadily on the back of a support at ₹900. Consequently, the stock marked a fresh 52-week high of ₹1,329.6 in early February.
But, since the price band of ₹1,300 and ₹1,330 acted as a resistance, the bulls could not take the stock beyond these levels. What initially appeared to be a correction, became a short-term downtrend as the bears gained momentum and the stock breached few key supports. The outlook on the scrip remains negative. One can sell, with a stop-loss at ₹1,110 and for a target of ₹1,030.
The recommendations are based on technical analysis. There is a risk of loss in trading