JP Associates is in Strong Down Trend, More Selling Expected Below 74 Levels

Jaiprakash Associates Ltd. a leader in construction sector, also it is one of the oldest company in this sector that is listed on NSE. Its shares began trading on 7 November 1994 on NSE. Also JPASSOCIAT has given very good dividends and bonus shares too, the stock performance of this company has been very impressive. But the current scenario is very different and the stock seems to be in downtrend, so we will be look for opening only short positions and continue this until we see some bullish move. Our advice is to enter short near the 84 level for target of 73 and 66 levels and also place the stop loss above the 87 level for protection against losses. Looking at technical indicators we see that RSI and slow stochastic is pointing that current trend will continue and indicators are in our favor. So this is a solid opportunity in terms of risk : reward ratio.

Fundamentals are some what weak as the company is backed by huge debts also the interest rates hike is creating pressure on the company. So we wont see any change in this sector very soon and this is most important reason to trade short on this company. However demand in cement sector was seeing growing with fastest pace.