LAURUS LABS LTD.
Technical View
- Laurus Lab experienced a remarkable parabolic rise of 1126% from March 2020 lows to its all-time highs of 723 levels.
- After this substantial surge, the stock underwent profit-taking phases, correcting by only 61.5% in its stage 4 of the stock cycle and then followed a sideways trend.
- The structure of higher highs and higher lows within stage 1 of the accumulation phase itself suggests gathering momentum and strength in the development.
- The recent potential breakout, accompanied by the highest positive volume in the last 11 months, further confirms the authenticity of the prior trend and the breakout.
- The stock’s 50-period volatility is currently trading at lower levels, reducing the likelihood of any drastic movements.
- Moreover, the RSI across daily and higher timeframes are well above their median levels, indicating potential thrust in the price momentum, which is a positive sign for the future.
- We recommend buying Laurus Lab in the range of 477 – 462 with a target price of 582 and maintaining a protective stop at 436.
LUPIN LTD.
Technical View
- Lupin’s stock price experienced an impressive 170% surge from the March 2023 lows before temporarily stalling.
- Following a 19-week period of consolidation within a narrow 12% range, it displayed indications of further accumulation before breaking out above the trading range with strong momentum and higher-than-average trading volume.
- This points to committed investors continuing to stay invested in the upward trend, and the recent sideways movement suggests further accumulation.
- With decreasing volatility and the relative strength aligning with the price action, we anticipate that the upward momentum will persist.
- The stock has garnered significant demand from buyers and has demonstrated improved EPS strength.
MARKSANS PHARMA LTD.
Technical View
- Marksan Pharma has exhibited strong market leadership characteristics.
- Analysis of the weekly timeframe indicates that the price action is following a bullish trend after breaking out from a significant cup and handle pattern that spanned nine years.
- Subsequent to the pattern breakout, the price action has risen above the mini accumulation phase, with the highest volume recorded in the quarter, confirming the strength of the momentum move.
- The recent sideways trend signals a substantial potential for further bullish momentum to support the newly established trend in November 2023.
- The company’s EPS, price strength, and demand from buyers have shown improvement, which is a positive signal.
- Our recommendation is to buy Marksan Pharma in the range of 187 – 183 with a target price of 230 and a stop loss at 171.
ORCHID PHARMA LTD.
Technical View
- Following a challenging period from April 2021 to February 2022, Orchid Pharma has spent 3 years in the redemption phase.
- The current price action shows promise for continuing the reversal trend.
- There has been modest accumulation at the gap-area of 964-900 following the Q3FY23 results acting as strong demand zone.
- The daily and higher time frame Relative Strength Index (RSI) are trading well above their median without showing any divergence against the price, indicating potential for further momentum in the price.
- Our recommendation is to buy Orchid Pharma in the range of 1143 – 1114 with a target of 1400 and a protective stop at 1076.
- Our recommendation is to purchase shares of Lupin in the range of 1770-1740 with a target price of 2125, and to set a stop loss at 1622.
SUN PHARMACEUTICAL INDUSTRIES LTD.
Technical View
- Based on the pattern analysis of the monthly timeframe, it appears that there has been a significant breakout from an 8-year cup and handle pattern.
- This suggests a strong potential for upward movement.
- The recent price action is holding steady at the support from shorter term weekly moving averages, indicating resilience against further downturns and presenting a favourable risk to reward opportunity.
- Both the daily and higher timeframe Relative Strength Index (RSI) are well above their median, suggesting potential for further momentum in price.
- Additionally, there has been improvement in EPS strength and buyer demand, which is a positive sign.
- Therefore, our recommendation is to buy Sun Pharma in the range of 1568 – 1538 with a target price of 1553 and a protective stop at 1454.
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