Sell in Infrastructure Development Finance Company (IDFC) from a short-term trading perspective. It is evident from the charts of IDFC that the stock bottomed out after nearing its 2006 low of Rs 43 in March. Since then it was on an intermediate-term uptrend till it encountered resistance at June peak of Rs 149 (a 52-week high). The stock reversed direction from there, triggered by negative divergence displayed in the week relative strength index (RSI). Following a recent bounce, the stock resumed its medium-term downtrend on July 22, diving almost 6 per cent with extraordinary volume. The weekly RSI is losing its momentum and is on the verge of entering the neutral region from the bullish zone. The daily RSI is declining in the neutral region towards the bearish zone. We are bearish on the stock from a short-term perspective. We anticipate the stock’s decline to continue until it knocks our price target of Rs 120. Traders with a short-term perspective can sell the stock while maintaining a stop-loss at Rs 138.

source:BL