The short-term outlook for the stock of UPL is turning bearish. The stock is indicating a top formation. It has been facing strong resistance in the ₹820-₹850 region since June last year. The stock has failed in its several attempts to breach ₹850 since then. The fall from the high of ₹848 made in the first week of this month indicates that the stock lacks strong buyers to rise past ₹850. It also signals a short-term trend reversal.

Also, the 2 per cent fall and close below the 200-Day Moving Average (DMA) on Thursday strengthens the bearish case.  A support-turned-trend resistance at ₹750 and the 200-DMA at ₹756 are the important resistances that can cap the upside now. Intermediate bounce to these levels can find fresh sellers coming into the market. The stock can fall to ₹685-₹675 over the next two-three weeks. Traders can go short now. Accumulate shorts on a rise at ₹748. Stop-loss can be placed at ₹762. Trail the stop-loss down to ₹732 as soon as the stock falls to ₹721. Move the stop-loss further down to ₹718 as soon as the stock touches ₹711 on the downside. Book profits at ₹705.

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