Quant Pick - Sun Pharmaceuticals: ICICI Direct

The pharma space has seen healthy consolidation in the last couple of months amid a broader market recovery. We believe the sector is set to resume its next round of upside move after a round of consolidation. As long positions are still intact in Sun Pharma, we believe the stock will resume its upward momentum in the near term. The open interest in the stock had moved to a five-month highs in early January 2021. Since then, it has seen a decline in OI at the end of February while OI levels have come down more than 8% along with a gradual fall in stock prices. Closure of leverage positions was seen in the stock in February indicating closure of long positions. We believe long positions in the stock are intact. Also, in the last couple of days the stock has witnessed long additions along with price rise. The upward bias may continue in it in coming weeks.

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Sun Pharmaceuticals 05-03-2021-icici