Reliance Mediaworks (Rs 224): Sell

Yogananad.D , the famous BL Research bureau analyst, recommends a sell in the stock of Reliance Mediaworks from a short-term perspective. It is apparent from the charts that after encountering significant long-term resistance in the band between Rs 300 and Rs 310 in early October, the stock started to decline and has been on a medium-term downtrend. On November 19, the stock tumbled 4.8 per cent breaking through its short-term support at Rs 250 and 50-day moving average around this level. The stock is hovering well below its 21 and 50-day moving averages. Moreover, it declined 3.5 per cent on Thursday breaching an intermediate-term support at Rs 235, reinforcing the stock's downtrend. The daily relative strength index is featuring in the bearish zone and weekly RSI is slipping in the neutral region. Daily moving average convergence divergence oscillator has signalled a sell and has entered into the negative territory implying downward momentum. We are bearish on the stock from a short-term perspective. We expect the stock's ongoing decline to continue until it hits our price target of Rs 218 or Rs 212 in the upcoming trading sessions. Traders with short-term perspective can consider selling with stoploss at Rs 230.



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