UPL’s stock has been depreciating steadily since early last year. It faced a resistance between ₹780 and ₹800 and began to decline. A couple of weeks ago, UPL broke below an important support at ₹500. This has increased the probability of further fall in price. Although there has been an increase in price recently, it is likely to be a corrective rally. Support-turned-resistance of ₹500 is likely to invite more bears, weighing on the stock.

At ₹500, a trendline and the 20-day moving average resistance coincides, making it a strong barrier. So, we recommend going short on UPL at the current level of ₹492. Add shorts in case the price inches up to ₹500. Keep initial stop-loss at ₹510. When the stock falls to ₹470, alter the stop-loss to ₹485. Exit at ₹460.

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