Sell in the stock of New Delhi Television from a short-term perspective. It is apparent from the charts that the stock has been on a medium-term uptrend from its July low of Rs 104. However, the stock encountered resistance (June peak) around Rs 185, which is also a key long-term resistance level, and reversed direction. This reversal was also triggered by a negative divergence displayed in the daily relative strength index (RSI). Moreover, on August 19, the stock slipped almost 6 per cent, reinforcing its decline. The daily RSI has entered the neutral region from the bullish zone and weekly RSI is also featuring in the neutral region. We also notice that the daily price rate of change indicator is showing negative divergence signalling bearishness. We are bearish on the stock from a short-term perspective. We anticipate the stock’s decline to prolong until it hits our price target of Rs 145. Traders with a short-term perspective can sell the stock while maintaining a stop-loss at Rs 170.

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