Investors with a short-term perspective can consider selling the shares of Gujarat Alkalies & Chemicals. The 21-day moving average at ₹184 has halted the stock’s bounce-back rally, which had begun from the low of ₹164.8 recorded in late January. After consolidating sideways for a while around the 21-DMA, the stock started to decline.

An indecisive close on Wednesday, followed by a sharp 2 per cent fall and a strong negative close on Thursday is increasing the downside pressure on the stock. Immediate resistance is at ₹177 to be followed by a strong short-term resistance at ₹180. As long as the stock trades below these resistances, a fall to ₹173 and ₹170 looks likely. Traders with a short-term perspective can go short. Stop-loss can be kept at ₹178 for the target of ₹170. The downside pressure on the stock will ease only if it breaks and records a decisive close above the 21-DMA resistance level.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)