FREE CALL:- MRPL

Investors with short-term trading perspective can consider selling the stock of Mangalore Refinery and Petrochemicals Ltd (MRPL). Since June 2009 high of Rs 102, the stock has been on an intermediate-term downtrend. In April 2010, the stock encountered significant resistance around Rs 84 and its downtrend accelerated thereafter. It has been on a medium-term downtrend too since April. The stock conclusively broke through its important long-term support level of Rs 70 during the third week of May by tumbling almost six per cent. At present, this support level has turned into a key resistance level for the stock. It is trading well below its 21 and 50-day moving averages. The daily relative strength index has re-entered into the bearish zone from the neutral region, whereas the weekly RSI is featuring in the bearish zone. Both daily and weekly moving average convergence and divergence indicators are hovering in the negative territory. These facts reinforce bearish sentiment on the stock. Our short-term forecast is bearish. We expect the stock to decline further until it hits our price target of Rs 63 in the upcoming sessions. Short-term traders can, hence, sell the stock with the stop at Rs 69.