[Premium] Trade Of The Week

June 22, 2022

The market correction has extended over the past few weeks and the negative sentiment build-up is definitely not something that will fade away quickly. As more and more sectors move below their support zones, buy ideas are hard to come by. Today we're sharing a short idea from the financial services sector.

Financial Services have fared better than certain other sectors in the market. But we're here to focus on the stocks that are displaying more weakness rather than strength. Muthoot Finance is one such name that recently broke down from its support zone. The price slid below its support zones without putting up a fight indicating the inherent weakness in the current move. The indicator is trading in the bearish momentum zone.

On a relative basis too, the stock is displaying weakness indicating that the journey to the south hasn't concluded yet.

We are bearish below the risk management level of 1,070 with a target close to 805.

Click on the chart to zoom in.