Raymond stock had shown a sharp rally recently. It moved up from Rs 77 to Rs 105. However, this was nothing but a correction to its previous drop where the stock had fallen from Rs 112.Moreover, at Rs 105, the stock has formed a double top. If one were to see the medium term chart, the top of Rs 105 would be the second lower top in the past few months. The oscillators also hint at the overbought position on the counter. All these factors point towards a correction.
While profit booking is highly recommended, short-selling can be done only with a stop loss of Rs 105.
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