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The stock of Ipca laboratories recently broke out of a consolidation range and the psychological hurdle at ₹2,000 which brought back the bullish momentum. Therefore, the stock seems to have aligned with the major uptrend and it is likely to appreciate further.
The uptrend in the stock really began from about ₹400 levels in mid-2017 and has been gaining steadily since then. Interestingly, while the broader market witnessed sharp sell-off in March 2020, the scrip showed substantial resilience.
That is, although the price dropped, it was comparatively much smaller than the overall market, indicating the innate strength of the stock. So, the journey upwards continued where it marked a fresh lifetime high of ₹2,460 in October.
However, unable to extend the rally, the stock started to moderate in the following months. But in February the decline was arrested on the back of the support at ₹1,800. After a brief consolidation, the stock has seen a fresh breakout. Hence, traders can buy the stock with stop-loss at ₹2,115 for a target of ₹2,250.
The recommendations are based on technical analysis. There is a risk of loss in trading
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