Technical Analysis

Sizzling Stocks - Divi's Laboratories (Rs 912.2)

Yoganand D. | Updated on November 15, 2017 Published on May 19, 2012

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Divi's Laboratories skyrocketed by Rs 89.8 or 11 per cent accompanied by good volumes last week. Ever since bottoming out in early 2009 at a low of Rs 382, the stock has been on a long-term uptrend.

In February and March this year, the stock took support at Rs 720 and resumed its long-term uptrend.

Medium- and short-term trends too are up for the stock. It is hovering well above its 50- and 200-day moving averages. Both daily and weekly relative strength index are featuring in the bullish zone.

Similarly, daily as well as weekly moving average convergence divergence indicators are hovering in the positive terrain implying upward momentum.

The stock can continue its uptrend and reach its immediate resistance at Rs 945 and later hit its all-time high of Rs 965 in the forthcoming weeks. Strong rally above Rs 965 will take the stock higher to Rs 1,000. However, inability to move above Rs 965 can pull the stock down to Rs 870 and then to Rs 850. Key supports below Rs 850 are pegged at Rs 820 and Rs 785.

Geometric (Rs 71.5)

After taking support from the stock's long-term base level around Rs 61, it zoomed 15.8 per cent accompanied by heavy volumes last week.

With this rally, the stock appears to have resumed its intermediate-term uptrend that has been in place from November 2011 low of Rs 36.5.

The stock has breached its 21- and 50-day moving averages and is hovering slightly above them.

Extension of current up move will test resistance at Rs 77 and then at Rs 81 in the short-term.

Strong breakthrough of Rs 81 is required to push the stock higher to Rs 90 in the medium-term. Immediate support for the stock is at Rs 66. A decline below this support can pull the stock down to Rs 60 and Rs 61 range.

Published on May 19, 2012
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