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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.)
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