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The outlook for the stock of Glenmark Pharmaceuticals is bearish. The stock tumbled 4.9 per cent on Monday. This fall has broken the sideways consolidation between ₹510 and ₹545 that was in place since late August this year. It also indicates the resumption of the overall downtrend that has been in place since mid-July this year. The region between ₹520 and ₹530 will now act as a good resistance and can cap the upside. Any bounce-back move above ₹500, if seen, can find fresh sellers coming into the market in the ₹520-530 region.
The stock can fall to ₹440 initially. A break below ₹440 can drag it further lower to ₹420 and ₹400 eventually. Traders can sell the stock now and accumulate short positions at ₹515. Stop-loss can be placed at ₹535 for the target of ₹420. Trail stop-loss to ₹470 as soon as the stock moves down to ₹455. Move the stop-loss further lower to ₹460 as soon as the stock comes down to ₹440.
The bearish outlook will get negated only if the stock breaks above ₹430 decisively.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)
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