Todays Pick

Sun Pharma Advanced Research Co (₹175.7): Buy

Yoganand D BL Research Bureau | Updated on April 22, 2021

The stock of Sun Pharma Advanced Research Company (SPARC) gained 6 per cent with above average volume on Thursday, breaching a key resistance at around ₹170. This rally has strengthened the short-term uptrend that had commenced from the late March lows of ₹141. Also, this recent up-move provides investors, with a short-term horizon, an opportunity to buy the stock at current levels.

In early January this year, the stock had encountered a key resistance at ₹210 and started to decline. The stock was on a medium-term downtrend until it found support at ₹141 in late March this year. Subsequently, the stock changed direction triggered by positive divergence in the daily relative strength index and began to trend upwards. While trending up, the stock had breached a key barrier at ₹170 and also the 50-day moving average. It trades well above the 21- and 50-day moving averages. There has been an increase in daily volume over the past two trading sessions.

The short-term outlook is positive for the stock. Targets are ₹183 and ₹187. Traders with a short-term view can buy the stock with a stop-loss at ₹171.5 levels.

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

Published on April 23, 2021

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