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Investors with a short-term view can sell the stock of Sun Pharma Advanced Research Company (SPARC) at current levels. Since encountering a key resistance at around ₹525 in early January, the stock has been in a medium-term downtrend.
While trending down, the stock breached a key support at ₹450 in early February and extended the fall. In April, the stock met with a key resistance at ₹430 and resumed its downtrend.
On Tuesday, the stock fell 3.2 per cent, breaching a key support at ₹400 as well as its 200-day moving average. The stock is trading well below its 50-DMA. Both the daily and weekly price rate of change indicators feature in the negative territory implying selling interest.
Overall, the short-term outlook is bearish for the stock. It can continue to decline and hit the price targets of ₹362 and ₹354 in the coming sessions. Sell with stop-loss at ₹385.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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