Ajanta Pharma’s share price has a sharp decline over the past few sessions. It fell off the hurdle at ₹1,850 last week and on Monday, the stock closed below a support at ₹1,700. Even though the price went up on Wednesday, the weakness persists, and the rally is likely to be a corrective one.
So, this can be considered as an opportunity to initiate short positions. Irrespective of the overall trend, which still remains bullish, the price action indicates a potential drop in price, particularly on Thursday. We expect an intraday decline to ₹1,620. So, traders can go short on the stock of Ajanta Pharma for intraday. Short at the current level of ₹1,701 and place a stop-loss at ₹1,740. Book profits at ₹1,620.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)