Ashish Chaturmohta
Ajanta Pharma has formed a major bearish head and shoulders reversal pattern on its monthly chart. The price has witnessed a breakout on the downside from pattern. The volumes have been above average and price erosion in last three weeks indicating selling pressure in the stock.
Weekly ADX line has turned up after being flat for the last four months indicating strength in a downtrend. The weekly MACD too has moved below neutral level of zero indicating a resumption of the downtrend. Any bounce back is a shorting opportunity in the stock.
Thus, the stock can be sold at current level and on the rise up to Rs 1,000 with a stop loss above Rs 1,030 for a target of Rs 900 levels.
Disclaimer: The author is Head Technical and Derivatives, 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.
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