The stock of Alkyl Amines Chemicals is on descent since August 2021 after being rejected by the resistance at ₹4,700. Between August 2021 and February 2022, the stock depreciated with intermittent corrective rallies. But in March, the stock showed some positive signs as the price level of ₹2,800 looked to provide a solid base.
But bears crashed all the hope as they managed to drag the stock below this level as it closed at ₹2,719.55 on Tuesday. Thus, further decline from here is highly with the nearest support at ₹2,540. So, traders can short the stock at current level with stop-loss at ₹2,810 for a target of ₹2,540. In case, if the stock opens on Wednesday with a gap-down, wait for the price to come back to ₹2,720 and then initiate short with same stop-loss and target levels as mentioned above. But if the stock begins the session above ₹2,800, refrain from trading. Because such an opening can lift the stock to ₹3,075 before resuming the downtrend.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)