Today's Pick - GAIL

We recommend a sell in GAIL India from a short-term perspective. From the charts of GAIL India we note that it has been on a long-term downtrend since its January 2008 peak of Rs 555. During early May, the stock declined crossing below the 50 and 200-day moving averages.

Moreover, the stock conclusively penetrated the significant support level at Rs 380 by tumbling 5 per cent (accompanied with high volume) on June 24. The daily and weekly relative strength indices are featuring in the bearish zone. The weekly moving average convergence and divergence (MACD) has entered the negative territory, indicating bearishness.

The long-term down trendline of the stock is intact. We are bearish on the stock in the short-term and expect it to decline further until it hits our price target of Rs 305 in the approaching trading sessions.

Traders with short-term perspective can sell the stock while maintaining stop-loss at Rs 359.