The short-term outlook for the stock of Torrent Power is bearish. The stock has been falling consistently over the last three weeks. The 5 per cent fall on Monday has dragged the stock well below the key level of ₹500. Strong resistance is in the broad ₹505-₹515 region. An immediate rise above ₹515 is unlikely.
The stock can fall to ₹465-₹460 and ₹450 in the next one-two weeks. Traders can go short at current levels. Accumulate shorts at ₹502. Keep the stop-loss at ₹520. Trail the stop-loss down to ₹488, stock falls to ₹478. Move the stop-loss further down to ₹471 when the stock touches ₹465 on the downside. Book profits at ₹455. The region around ₹450 is strong support from where a reversal is possible.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)