Todays Pick

Glenmark Pharmaceuticals (493.4): SELL

Gurumurthy K BL Research Bureau | Updated on September 20, 2021

 

The outlook for the stock of Glenmark Pharmaceuticals is bearish. The stock tumbled 4.9 per cent on Monday. This fall has broken the sideways consolidation between ₹510 and ₹545 that was in place since late August this year. It also indicates the resumption of the overall downtrend that has been in place since mid-July this year. The region between ₹520 and ₹530 will now act as a good resistance and can cap the upside. Any bounce-back move above ₹500, if seen, can find fresh sellers coming into the market in the ₹520-530 region.

The stock can fall to ₹440 initially. A break below ₹440 can drag it further lower to ₹420 and ₹400 eventually. Traders can sell the stock now and accumulate short positions at ₹515. Stop-loss can be placed at ₹535 for the target of ₹420. Trail stop-loss to ₹470 as soon as the stock moves down to ₹455. Move the stop-loss further lower to ₹460 as soon as the stock comes down to ₹440.

The bearish outlook will get negated only if the stock breaks above ₹430 decisively.

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

Published on September 21, 2021

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