The outlook for the stock of Indoco Remedies is bearish. The 4.6 per cent fall on Wednesday has strengthened the short-term down trend. The current leg of fall has potential to drag the stock down to ₹275 in the next couple of weeks or even earlier. Strong resistance is ₹330-₹335 region.
An intermediate bounce is likely to be capped at ₹335. Fresh sellers are likely to emerge at higher levels and arrest the upmove. Traders can go short at current levels. Accumulate shorts on a rise at ₹326. Keep the stop-loss at ₹339. Trail the stop-loss down to ₹305, the stock falls to ₹295. Move the stop-loss further down to ₹294 when the stock touches ₹288 on the downside. Exit the short positions at ₹280.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)