Let have a BEAR RIDE on United Phosphorous Ltd.

With the currently weak markets with lesser appetite to the supply and selling at every high level, this counter could be traded for the shorter side.
Let's analyze the technical situation of this scrip.

• The ADX value, a measure of the strength of the trend in a stock is at 38, suggesting a strong trend. The short term moving average 20-EMA is above the long term moving average of 50-EMA, which shows bullishness in the counter. Some of it could be attributed to the recent days acquisition of the fungiside business of the American firm Dupont which has significant presence in the US market.

• However this news has already been factored in the price movements.The MACD line going below the Signal line and the MACD Histogram again in the negative territory, the risk reward ratio is low on the shorter side.
  

• The -DI line is already near the bottom means that the number of sellers in the scrip would only increase in the session at each higher level, considering the periodic nature of the +DI & -DI lines.

• The Slow Stochastic momentum indicator is off from the 80's and %K line is again below the %D line. The negative momentum is building up in the scrip.

The approach should be to sell the scrip in the price range of Rs.183-183.9 with a strict stop loss of 1% at the price of nearly Rs. 185.3-185.7.the target for this scrip should be near the 20-EMA support of Rs. 175-176.

Akash Singh, Technical Analyst [Akash@hbjcapital.com], HBJ Capital Services Pvt Ltd.