Sell in the stock of Grasim Industries from a short-term perspective. It is evident from the charts that the stock was on an intermediate-term uptrend from December 2008 low of Rs 872 to July 2009 high of Rs 2,938. However, after encountering key resistance around Rs 2,900, the stock reversed direction triggered by negative divergence in the weekly relative strength index (RSI). It formed a double top, a top reversal pattern spanning between mid-July and early October with baseline at Rs 2,465. On October 9, the stock conclusively broke through this pattern by tumbling almost 3 per cent. Subsequently, it penetrated the intermediate-term uptrend-line and continued its decline. The stock is currently trading well below its 21-day and 50-day moving averages. The daily RSI is featuring in the bearish zone and weekly RSI is slipping towards this zone in the neutral region. We are bearish on the stock from a short-term perspective. We anticipate the stock’s decline to continue until it hits our price target of Rs 2,140. Traders with a short-term perspective can sell the stock while maintaining a stop-loss at Rs 2,450.