The near-term outlook for the stock of GAIL is bearish. The stock fell 2.4 per cent on Monday breaking below the key support at ₹385, which was holding for more than a week. The stock has also declined below the 100-DMA, which is at ₹380, and it might add to the downside pressure in the coming days. The region between ₹380 and ₹385 will now be a strong resistance zone for the stock. Rallies to this resistance zone may bring on fresh selling.

A fall to ₹370 and ₹365 — the 200-DMA support level — looks likely in the coming days. Traders with a short-term perspective can go short. Stop-loss can be placed at ₹385 for a target of ₹365. Revise the stop-loss lower to ₹375 as soon as the stock moves down to ₹370. A strong break below ₹365 will increase the danger of the fall extending further to ₹355 and ₹350 thereafter. But, a reversal from ₹365 will keep the broader ₹365-₹405 range intact.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

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