Marico‘s stock has been on a downtrend since September last year. It began to depreciate on the back of the resistance at ₹600. In early March this year, the scrip slipped below a key support at ₹515, opening the door for further fall in price. That said, over the past couple of weeks, the stock has largely been kept in a horizontal trend between ₹490 and ₹505.
The sideways correction led to the price nearing the 20-day moving average resistance. Also, the chart shows that the overall trend is bearish and that the stock could resume the downtrend anytime. So, we suggest going short on Marico now at around ₹496 and add more shorts if the price inches up to ₹505. Place stop loss at ₹510. Book profits at ₹485.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)