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We recommend a sell in Rolta India from a short-term perspective. From the charts of Rolta India, we observe that the stock has been on a medium-term uptrend from its early July low of Rs 224. This uptrend has reversed from the significant resistance at Rs 340. The stock had formed a medium term peak at this level in May too and declined more than 30 per cent from there. We notice a bearish engulfing candlestick pattern (a reversal pattern) in the daily chart on August 5. The oscillators in the daily chart are in the overbought region and are ripe for a correction. The daily relative strength index has entered into the neutral region from the bullish zone. Loss of momentum is evident in the short-term. Taking into consideration, the significant resistance and bearish engulfing candlestick pattern, we are negative on the stock in the short-term. We expect the stock to decline until it hits our price target of Rs 280 in the approaching trading sessions. Traders with short-term perspective can sell the stock, while maintaining a stop-loss at Rs 326.

BL Research Bureau

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