We recommend a sell in the stock of Century Textiles and Industries from a short-term perspective. It is seen from the charts of the stock that from mid-January 2010 the stock has been consolidating sideways in a broad range between Rs 430 and Rs 550. After testing the upper boundary in early October and November, the stock changed direction and started to decline. A prolonged negative divergence displayed in the daily moving average convergence divergence supports the stock's reversal. The stock tumbled 5.5 per cent last week, breaching its 21- and 50-day moving averages. On November 16, the stock plunged 4 per cent penetrating a key medium-term support at Rs 500 and also 200-day moving average. The daily relative strength index has entered the bearish zone from the neutral region and weekly RSI is slipping towards the bearish zone. Daily MACD has signalled a sell and is on the brink of entering in to the negative territory implying downward momentum. Our short-term forecast on the stock is bearish. We expect the stock's decline to continue until it hits our price target of Rs 472 or Rs 460. Short-term traders can consider selling the stock with stop-loss at Rs 498.

Yoganand D.

BL Research Bureau