Patni Computers - Negative Breakout?

Patni Computers tried to hit its previous high of Rs. 506 in March last week before contracting back to its current levels. The stock achieved a maximum recovery of Rs. 493. The stock is now currently trading at Rs. 403, a discount of close to 20%. The fall has not been regular with a gap created in the fall. This gap could get covered in the near future, though covering is not a necessary criterion.

• MACD is in a definite 'sell' zone and the column bars are still increasing giving some indication on the strength of the downside movement.
• RSI is still on a comfortable zone even though it has not reached a definite 'buy' zone.
• Accumulation Distribution chart gave a small indication of some fresh purchases on this stock at todays current levels. This is the only indicator on the buy side.
• Fibonacci Chart has given one support levels at Rs. 409. The stock is currently marginally down from these levels. Incase it breaks the current price and falls to 385, we can see some further selling on this stock and the next support would be around Rs. 380. This is one level where the stock has extremely strong support. If the stock does turnaround and move upwards, then one level to look at would be to cover the gap between 433 and 450. So one can expect some resistance at this level before it inches upwards to Rs. 500 to break its March benchmark and reach 100% of its fibonacci retracement.

Hence those mentioned above would be the benchmarks to look at in this stock!