I bought the shares of Fiem Industries at Rs 590 for the short term, but I have seen stock falling continuously. What to do now?
EXIT FIEM INDUSTRIES
Fiem Industries Ltd is currently trading at Rs 571. Its 52-week high/low stand at Rs 1057.95/Rs 471.10 made on January 5, 2018 and October 5, 2018, respectively. The stock witnessed breakdown from the rectangle pattern in the month of June 2018 and went on to mark 52-week low in the month of October. After registering 52-week low, the stock witnessed a pullback rally of about 38 per cent and, thereafter, the stock is seen trading in a narrow contracting consolidation range with a negative bias. The stock is trading below its important moving average, i.e. 200-day EMA on the daily chart and also its 100-week EMA on the weekly chart, which is a negative for the stock. On the weekly RSI, it has witnessed a negative crossover. Hence, we suggest exiting the stock on a bounce-back.