The short-term outlook for the Insecticides India stock looks bearish. The stock has been in a strong downtrend since December last year. The sharp 5.5 per cent drop on Wednesday has accelerated the fall. Resistance is now at ₹568. Any intermediate bounce if seen can be capped at ₹568.
Fresh sellers are likely to emerge at this level. The stock price of Insecticides India can fall to ₹530-₹520 over the next two-three weeks or even earlier. Traders can go short at current levels. Accumulate on a rise at ₹564. Keep the stop-loss at ₹574. Trail the stop-loss down to ₹545 as soon as the stock falls to ₹538. Move the stop-loss further lower to ₹536 when the stock touches ₹530 on the downside. Exit the shorts at ₹525.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)