We recommend a sell in Akruti City from a short-term perspective. It is clearly evident form the charts of Akruti City that it has been on a modest uptrend from its July low of Rs 607, which is a 52-week low. However, after recording a high of Rs 1,035 recently the stock encountered resistance and it reversed direction. This stock’s reversal has been supported by a negative divergence in the daily moving average convergence and divergence (MACD). On September 26, the stock plummeted 16 per cent with a downward gap.

The stock conclusively closed below its 21-day moving average, accompanied with heavy volume on the same trading session. The daily relative strength index is falling in the neutral region, losing its momentum. Our short-term forecast for the stock is bearish. We expect the stock to decline further until it hits our price target of Rs 720 in the approaching trading sessions. Traders with short-term perspective can sell the stock while maintaining a stop-loss at Rs 836.

Yoganand D.

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