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The stock of Birla Corporation is on a decline since the beginning of 2022. After facing resistance at ₹1,625 in mid-January, the scrip has witnessed considerable sell-off. This week, it fell below the ₹1,000-mark and it sustains below this, indicating inherent weakness. Thus, the stock will most probably depreciate from the current levels and drop on Thursday is likely. Indicators like the RSI and the MACD on the daily chart are showing bearish bias as well.
Given the above factors, one can consider initiating fresh short positions on Thursday. That is, short the stock at the current level of ₹959 and more on a rally to ₹985. Place stop-loss at ₹1,015. Liquidate the shorts when the stock declines to ₹900. Since ₹900 is a support, note that there can be a rally after touching this level. In case if the stock opens with a gap-down, wait for the stock to rise and execute shorts at ₹960 and ₹985. Refrain from trading if the stock begins the session above ₹1,000.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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