Havells - A downturn

Havells had a very good run from July last year. The stock has more than doubled in this period. Infact the stock has moved quite rapidly in the past few days. However, the stock is seeing some correction in the market now. The stock surged 20% in one single trading day on strong volumes. Since then, the stock has seen some correction.

• MACD is close to giving a 'sell' signal and the column bars are reducing
• RSI is still in the zone of expensive. Though, the stock is still yet to give a signal of 'overbought'
• The stock needs to be looked at in the Accumulation Distribution segment. The stock's volume is increasing rapidly and causing a deep fall in the market.

The stock is in a comfortable margin over the 200 day average. Hence, still not a problem. However, these are the following stop losses : Rs. 417 on the lower side and Rs. 471 on the higher side. Given the negative break out in the stock, look till this stabilises. One note of concern: This is a volatile stock and revaluation is too quick and sharp.