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Last Updated : Aug 04, 2020 12:17 PM IST | Source: Moneycontrol.com

Alkem Labs shares hit fresh all-time high; ICICI Direct sees more upside

As of August 3 close, the stock is up 39 percent on BSE in the calendar year 2020 so far, against a 10 percent fall in the benchmark Sensex.

 
 
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Shares of Alkem Laboratories jumped about 4 percent to hit their fresh all-time high of Rs 2,903.20 in morning trade on BSE on August 4.

The stock has been trading with gains since July 28th and if it closes in the green today, it will be its sixth consecutive session of gains.

As of August 3 close, the stock is up 39 percent on BSE in the calendar year 2020 so far, against a 10 percent fall in the benchmark Sensex.

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A multinational pharma company, Alkem Laboratories manufactures and sells pharma generics, formulations and nutraceuticals in India.

Brokerage firm ICICI Direct has a six-month target price of Rs 3,090 on the stock with a stop loss of Rs 2,398.

"The share price of Alkem Laboratories remains in a strong up-trend and has generated a breakout above the last 11 week’s consolidation range (Rs 2,580-2,222), signalling a resumption of up-move and offers a fresh entry opportunity," said ICICI Direct.

"Structurally, the stock has recently rebounded, forming a higher base at the rising 52 weeks EMA (Rs 2,295) as it can be seen in the adjacent chart. Time-wise, it has already taken 13 weeks to retrace just 61.8 percent of the previous six week’s rally (Rs 1,882-2,879). A slower retracement and a higher base at the 52-week’s EMA highlights a robust price structure," the brokerage added.

ICICI Direct expects buying demand for the stock to emerge around Rs 2,400-2,420 levels in case of any corrective decline as it is the confluence of the last two weeks almost identical lows around Rs 2,415 and the 61.8 percent retracement of the current up-move (Rs 2,222 to 2,718).

ICICI expects the stock to continue its up-move and head towards Rs 3,090 in the medium-term as it is the 138.2 percent external retracement of the previous decline (Rs 2,879-2,222) at Rs 3,090.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
First Published on Aug 4, 2020 12:17 pm
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