Share to buy: Sun Pharma set to give 11 pct returns in one month, say experts
Sun Pharma stock has validated the Hammer candle pattern formed on the weekly chart (moved above candles high) which is confirmation of the bullish reversal.
Sun Pharma share price is expected to deliver around 11 per cent returns if a stock market investor decides to buy the stock at its current levels of around Rs 400 per share. Stock market experts are of the opinion that Sun Pharma stocks' 21 days exponential moving average indicates an upside momentum while its RSI positive divergence is also promising for the traders. Experts are of the opinion that the counter may show Rs 445 per stock levels in short-term perspective means in around one-month period.
Speaking on the short-term technical outlook of the Sun Pharma share price Gajendra Prabu, Technical Research Analyst, HDFC Securities said, "The stock has validated the Hammer candle pattern formed on the weekly chart (moved above candle’s high) which is confirmation of the bullish reversal. Price has provided a breakout of key short term trendline. Price has started to form a higher top and higher bottom on intraday charts which is a bullish development. In addition, technical indicators are placed in favour of bulls; this could add strength to bulls."
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On the suggestion to the stock market investors, Gajendra Prabu of HDFC securities said, "Traders may look to buy the stock at CMP and add on dips to Rs 385 for the upside target of Rs 445 over the next 2-3 weeks. Place a stop loss at Rs 377."
Giving details of the fundamentals of Sun Pharma counter Prakash Pandey, Head of Research at Fairwealth Securities said, "Exponential moving average of the Sun Pharma shares is indicating an upside momentum while its RSI Positive Divergence is also supporting the bull run in the pharma counter. I would suggest stock market investors take a buy position in the counter for around 10-12 per cent gains in short-term means around one-month time period."
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