Accumulate Unichem Labs; target Rs 205: ICICIdirect
ICICIdirect.com is bullish on Unichem Laboratories and has recommended accumulate rating on the stock with a target price of Rs 205 in its September 4, 2012 research report.
September 04, 2012 / 16:44 IST
ICICIdirect.com is bullish on Unichem Laboratories and has recommended accumulate rating on the stock with a target price of Rs 205 in its September 4, 2012 research report.
“Unichem Laboratories’s share price recorded its all-time high of Rs 269 towards late December 2010. Thereafter, it went into a tailspin correcting more than 60% within a year to hit a major trough of Rs 100 towards mid-December 2011. At around Rs 100, the stock retraced the year 2009-2010 (Rs 53 to Rs 269) by precisely 78.6% and witnessed a steady bounce back supported by huge volumes. Thereafter, the share price remained in a consolidation mode from January 2012 to August 2012, oscillating between Rs 160 and Rs 110. The eight month consolidation appears to have occurred in a well defined symmetrical Triangle pattern as highlighted in the adjoining weekly candlestick chart.” The share price witnessed a strong volume led breakout past the triangular consolidation range during mid-August 2012. The said break out occurred with a strong upward gap on the daily charts between Rs 158 and Rs 155, which signifies the strong bullish momentum during the breakout. Price throwbacks in the last couple of weeks have seen the share price revisit the break-out area accompanied by thin volumes. This suggests a healthy corrective decline as bulls take a breather before resuming the northward march. Momentum oscillators on the daily and weekly chart are firmly poised and indicate continuance of the upward momentum. The medium-term and long term moving averages (21 week EMA and 52 week EMA) have generated a positive crossover on the weekly charts indicating a major shift of momentum in favour of bulls.”The measuring implication of the price pattern i.e. the width of the base of the Triangle pattern (160-110=50) from the breakout level of Rs 150 suggests a strong possibility of the share price heading towards 200 levels in the medium term. Further, the 61.8% Fibonacci retracement of the 2010-2011 decline is also placed at 205 levels,” says ICICIdirect.com research report.Non-Institutions holding more than 90% in Indian cos Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies 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.To read the full report click on the attachment 
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