The outlook for the stock of Jubilant Life Sciences is bearish. The stock fell 3 per cent on Monday. The stock has been in a strong downtrend since March high of ₹451.8. This fall halted at a low of ₹339.5 in May. The corrective rally from this low faced strong resistance from the 200-DMA at ₹377.
After consolidating below this resistance for about a week, the stock tumbled sharply this week. Monday’s strong fall keeps the overall downtrend intact and also signals the beginning of a fresh leg of down move.
Strong resistance is in ₹363-364 band. . Traders with a short-term perspective can go short. Stop-loss can be placed at ₹358 for a target of ₹335. Revise the stop-loss lower to ₹345 as soon as the stock slips to ₹340.
The outlook for the stock will turn positive only if it breaches above the 200-DMA resistance decisively. But such a strong up move looks unlikely at the moment.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)