Snake-in-the-box code is a Gray code which is capable of detecting a single error. Gray codes are important in the context of the rank modulation scheme which was suggested recently for representing information in flash memories. For a Gray code in this scheme the codewords are permutations, two consecutive codewords are obtained by using the "push-to-the-top" operation, and the distance measure is defined on permutations. In this paper the Kendall's $τ$-metric is used as the distance measure. We present a general method for constructing such Gray codes. We apply the method recursively to obtain a snake of length $M_{2n+1}=((2n+1)(2n)-1)M_{2n-1}$ for permutations of $S_{2n+1}$, from a snake of length $M_{2n-1}$ for permutations of~$S_{2n-1}$. Thus, we have $\lim\limits_{n\to \infty} \frac{M_{2n+1}}{S_{2n+1}}\approx 0.4338$, improving on the previous known ratio of $\lim\limits_{n\to \infty} \frac{1}{\sqrt{πn}}$. By using the general method we also present a direct construction. This direct construction is based on necklaces and it might yield snakes of length $\frac{(2n+1)!}{2} -2n+1$ for permutations of $S_{2n+1}$. The direct construction was applied successfully for $S_7$ and $S_9$, and hence $\lim\limits_{n\to \infty} \frac{M_{2n+1}}{S_{2n+1}}\approx 0.4743$.