The stock of FSN E-Commerce Ventures (Nykaa), since its listing in November last, has been on a descent. Last week, it breached a key support at ₹1,250 is currently trading around ₹1,152. Although it made a marginal gain on Wednesday, the stock’s downtrend is intact, and the up move is nothing more than a corrective rally.
We expect it to fall from here and given the price action, it can be considered for intraday shorts on Thursday. Sell at current level of ₹1,152 with a stop-loss at ₹1,175. Book profits when the price falls to ₹1,105. Don’t short if the stock opens at ₹1,170 or higher on Thursday.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)