Glenmark Pharma

We recommend a sell in Glenmark Pharmaceuticals from a short-term trading perspective. It is visible from the charts of Glenmark Pharma that in March it took support just above the key support level of Rs 120 and began to trend upward. The stock was on a medium-term uptrend till it encountered resistance at Rs 217 in late April. Subsequently, the stock reversed direction, triggered by the negative divergence displayed in the daily relative strength index (RSI).

On April 28, the stock tumbled 8 per cent, reinforcing the downtrend. Recently, the stock conclusively penetrated its medium-term up-trendline as well as the 21-day moving average. Since late April, the stock has been on a short-term downtrend. There is a bearish crossover in the daily moving average convergence and divergence indicator and it is heading towards the negative territory.

Our short-term outlook on the stock is bearish. We expect the stock’s short-term downtrend to continue until it hits our price target of Rs 150 in the upcoming trading sessions. Traders with short-term trading perspective can sell the stock while maintaining a stop-loss at Rs 177