Buy Sun Pharmaceutical Industries, target Rs 720: Ashish Chaturmohta

Ashish Chaturmohta

Sun Pharmaceutical Industries slipped from its all-time high of Rs 1,201 to a low of Rs 430. It formed a double bottom formation between Rs 600 and Rs 430 on the weekly charts over a 14-month period.

The volumes during the pattern formation were above average indicating accumulation at lower levels in the stock. The breakout from the pattern in August this year was on strong momentum and high volumes to touch a high of Rs 679 in September.

Since then the stock has been consolidating above the breakout level between Rs 679 and Rs 610 which is a positive sign. Thus, the stock can be bought at current level and on dips towards Rs 630 with a stop loss below Rs 605 and a target of Rs 720.

Disclaimer: The author is Head of Technical and Derivatives at Sanctum Wealth Management. The views and investment tips expressed by investment expert on moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.