Sun Pharma

Our technical stock pick today is Sun Pharmaceutical Industries. We recommend a buy in this stock at the current price level. It is evident from the daily chart that the stock has been declining after recording a life-time high at Rs 1,196 in April. It halted around Rs 900 in early August, which is a historically strong support level. After hovering around the aforesaid support level for a month, the stock started rallying recently. Sun Pharmaceuticals has conclusively penetrated the short-term downtrend line as well as the 50-day moving average on September 5, recording a gain of Rs 38 on that day. The daily momentum indicators signify bullishness. Short-term investors can buy the stock at current levels with a stop at Rs 955. We expect the stock to move towards the immediate target at Rs 1,050 and then to Rs 1,080 in the short-term. Investors can book profits at either of these targets.

Via Businessline