ICICIdirect.com has recommended to buy Pfizer in the range of Rs 2100-2050 for a target of Rs 2425 with a stop loss below Rs 1940 on a closing basis, in its research report dated March 09, 2015.
Technical Delivery Call on Pfizer by ICICIdirect.com
The pharma space remains a significant outperformer over the past few weeks and most of the stocks extended gains post Union Budget to scale fresh life highs. While frontline stocks continue their dream run, even midcaps offer a decent opportunity to ride the momentum.
The share price of Pfizer has resolved out of bullish double bottom formation formed at the key value area, signalling resumption of larger bull phase. Hence, it offers an entry opportunity from short-term perspective.
The stock attracted decent buying around Rs 1950-1970 during the current decline and resulted in a basing formation.
Longevity of the up trend is also vouched for by the fact that rallies are supported by volumes in excess of 50-day average while corrections saw low activity. Trading volumes surged above 50-day average (22,700 shares) on Monday while price broke out of double bottom pattern.
Based on the above technical parameters, we believe the stock is set for its next up leg within the larger up trend. We expect the stock to head towards Rs 2440 being the 138.2% retracement of the recent down leg (2310-1955).
Strategy: "Buy Pfizer in the range of Rs 2100-2050 for a target of Rs 2425.00 with a stop loss below Rs 1940.00 on a closing basis", says ICICIdirect.com research report.
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