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We recommend a sell in Unitech from a short-term trading perspective. After finding support around Rs 25 in early March, the stock began to trend upward as is evident from the charts. The stock price almost doubled from the March low to April peak. However, this medium-term uptrend encountered resistance around Rs 57 in the middle of April. The stock formed a shooting star reversal candlestick pattern and changed its trend downward. Moreover, a negative divergence displayed in the daily relative strength index (RSI) backs this reversal. On April 22, the stock fell 9 per cent, confirming the reversal. Subsequently the stock breached its medium-term up trend-line too. The daily RSI has entered the neutral region from the bullish zone and is gradually loosing momentum. The daily moving average convergence and divergence indicator is signalling a sell. We notice that the volumes are declining steadily in line with the short-term downtrend. Our short-term outlook on the stock is bearish. We anticipate it to decline further until it hits our price target of Rs 38 in the near future. Traders with short-term trading horizon can sell the stock while maintaining a stop-loss at Rs 45.5.

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