Todays Pick

Strides Pharma Science (₹542.7): Sell

Akhil Nallamuthu BL Research Bureau | Updated on October 20, 2021

The stock of Strides Pharma Science, after facing resistance at ₹800 in early August, witnessed a sharp decline in price. The sell-off resulted in the stock marking a low of ₹562.5 towards the end of August, thereby losing nearly 30 per cent within a month. But thereafter, the stock entered a consolidation phase, and it was largely fluctuating within ₹580 and ₹625.

However, on Tuesday, the stock breached the support of ₹580, opening the door for the next leg of downswing. The price action since August i.e., a decline followed by consolidation and then a break down is a clear bearish sign and indicators like the RSI and the MACD also remain in their respective negative territory.

Hence, traders can consider selling the stock at current level and short again if it rallies to ₹570. Place initial stop-loss at ₹590 and revise it downwards it down to ₹560 if the stock falls below ₹535. If the stock falls below ₹535 without rallying to ₹570, place stop-loss at ₹560. Targets can be ₹500 and ₹475.

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

Published on October 21, 2021

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