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We recommend a sell in United Phosphorus from a short-term perspective. From the charts of United Phosphorus, we note that the stock has been on a medium-term term down-trend from its January high of Rs 425. However, following a corrective pullback rally from the March low of Rs 228, the stock met with a resistance at around Rs 300 recently.

We see that the corrective pullback rally of the stock has retraced 38.2 per cent fibonacci retracement level of the medium-term downtrend.

The stock appears to have resumed the medium-term downtrend from the resistance level of Rs 300 by forming a bearish engulfing candlestick pattern.

The daily momentum indicator has started declining, after encountering resistance at around 60 levels. Considering that the medium-term trend continues to be down, we are bearish on the stock in the short-term.

We expect the medium-term down-trend in the stock to prolong to our target price level of Rs 250 in the upcoming trading sessions. Investors with short-term perspective can sell the stock, while keeping the stop loss at Rs 306.

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