Technical Analysis

Suven Life Sciences (₹244.8): Buy

Yoganand D BL Research Bureau | Updated on August 19, 2019 Published on August 20, 2019

Investors with a short-term perspective can consider buying the stock of Suven Life Sciences at current levels.

The stock gained 4.7 per cent accompanied by above average volume on Monday, breaching a key resistance at ₹235 as well as the 21-day moving average. Recently, the stock took support at around ₹220 and reversed direction triggered by positive divergence in the daily relative strength index and price rate of change. It has been in a near-term rally over the last two weeks.

With the on-going rally, the stock’s short-term downtrend that had been in place in the past two months had come to an end. The daily RSI is on the brink of entering the bullish zone from the neutral region. Moreover, the daily price rate of change indicator features in the positive terrain implying buying interest.

There has been an increase in daily volume over the last three trading session. The near-term outlook is bullish for the stock. It has the potential to trend upwards and reach the price targets of ₹255 and ₹260 levels in the ensuing trading sessions. Traders with a short-term view can buy the stock with a stop-loss at ₹239.

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

Published on August 20, 2019
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