The short-term outlook for the stock of JK Lakshmi Cement is bearish. The stock has been in a strong downtrend since July end last year. It fell 2 per cent on Thursday and is down 4.94 per cent in the last two trading days. Key resistance is in the ₹590-₹605 region. Any intermediate bounce to these levels are likely to find fresh sellers coming into the market. As such the upside is likely to be capped at ₹605 for now. The stock can fall to ₹530 initially.
A break below ₹530 will increase the downside pressure. Such a break will drag the stock further down to ₹490 in the coming weeks. Traders can go short at current levels and accumulate on a rise at ₹585. Stop-loss can be placed at ₹610. Trail the stop-loss down to ₹555 as soon as the stock falls to ₹535. Move the stop-loss further lower to ₹530 as soon as the stock touches ₹515 on the downside. Book profits at ₹505. The stock will have to break above ₹605 in order to ease the downside pressure and tunr bullish again. But the price action on the chart indicates that the chances are very less for that.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)