The stock of GMR Infrastructure is on a downtrend since the beginning of 2022 after facing resistance in the price band of ₹48-50. Notably, for the past two weeks the stock saw a rally after marking a low of ₹31.75. On Monday, it closed at ₹36.65.
But the upside seems to be coming to an end as the current level is a resistance. Also, a falling trendline coincide at this level, making it a strong barrier. The candlestick on Monday hints at fresh sellers coming at around ₹37.25. The above factors show that the stock will be bearish on Tuesday, making it a good scrip for intraday shorts.
Therefore, traders can initiate fresh shorts on Tuesday with stop-loss at ₹37.70. If the stock opens with a gap-down, wait for the corrective move to ₹36.60 where one can short the scrip. The target for this short position can be ₹34.60. But in case of the stock begins the session with a gap-up above ₹37.70, refrain from trading this stock.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)