Technical Analysis

Sun Pharma Advanced Research Company (₹154.7): Buy

Yoganand D BL Research Bureau | Updated on July 19, 2019 Published on July 19, 2019

The stock of Sun Pharma Advanced Research Company has gained 8.8 per cent with above average volume on Thursday, breaching a key resistance at ₹149. It has been in limelight over the past four trading sessions. The recent rally gives traders with a short-term perspective an opportunity to buy the stock at current levels.

After recording a 52-week low at ₹107 in early July, the stock changed direction triggered by positive divergence in the daily as well as weekly relative strength indices. Since then, the stock has been in a short-term uptrend. While trending up, the stock had breached its 21- and 50-day moving averages recently and trades well above them.

The recent break above the key resistance level of ₹149 strengthens the short-term uptrend. Also, there has been an increase in daily volume over the past four trading sessions. The daily RSI features in the bullish zone and the weekly RSI has entered the neutral region from the bearish zone. The daily price rate of change indicator hovers in the positive terrain implying buying interest.

The stock can extend the uptrend and reach the price targets of ₹161 and ₹164 in the ensuing trading sessions. Buy the stock with a stop-loss at ₹151.

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

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Published on July 19, 2019
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