Investors with a short-term perspective can buy the stock of Sun Pharma Advanced Research Company at current levels. The stock has been on an intermediate-term uptrend since taking support at ₹105 in August 2013. Following a corrective downtrend, the stock found support at its long-term base level of ₹145 in late March. This level also coincides with the 50 per cent Fibonacci retracement and 200-day moving average.

On Monday, the stock breached its immediate key resistance at ₹152 by gaining 2.7 per cent. This rally has also surpassed its 21-day moving average. The relative strength index on the daily and weekly charts are moving higher in the neutral region towards the bullish zone, backing the near-term upmove.

The daily moving average convergence divergence indicator has signalled a buy. The stock has the potential to extend its current rally in the short term. Targets are ₹163 and ₹166.5 levels. Buy the stock with a stop-loss at ₹153.5.

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

(This article was published on April 8, 2014)
XThese are links to The Hindu Business Line suggested by Outbrain, which may or may not be relevant to the other content on this page. You can read Outbrain's privacy and cookie policy here.