The stock has major support in the range of Rs 2,150-2,200 being the confluence of 80% retracement of the previous up move from Rs 2,050 to Rs 2,549 and 12 months EMA, says Dharmesh Shah of ICICI Direct.com Research.
The share price of Pfizer India is in a strong uptrend forming a rising peak and rising trough and has recently registered a Flag breakout on the monthly chart highlighting the strength in the uptrend.
The stock offers a fresh entry opportunity at current levels from a medium-term perspective. It entered a sideways consolidation mode after hitting a 52-week high of Rs 2,369 in mid-February 2018 and, thereafter, oscillated in a price band of Rs 2,350 to Rs 2,050 in the last three months.
Pictorially, this sideways consolidation has taken the shape of a bullish Flag pattern as highlighted in the adjoining chart. The resolute breakout from the bullish Flag pattern in current months trade signals conclusion of the secondary corrective phase and resumption of the primary uptrend thus provides fresh entry opportunity.
The stock has major support in the range of Rs 2,150-2,200 being the confluence of 80% retracement of the previous up move from Rs 2,050 to Rs 2,549 and 12 months EMA.
Time-wise, the stock has seen a faster retracement of the last falling segment as nine weeks decline from Rs 2,369 to 2,080 was completely retraced in just four weeks signaling a robust price structure.
Based on the above technical observation, the stock is likely to continue with a positive bias and head towards Rs 2,978 levels being the measuring implication of the flag breakout.
The height of the pole of the flag 688 points (2369-1681=688) added to the breakout area of Rs 2300 which projects an upside towards Rs 2978 (2300+ 688=2978)Disclaimer: The author is Head Technical, AVP at ICICI Direct.com Research. The views and investment tips expressed by investment experts 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.