Buy Sun Pharmaceuticals in range of Rs. 518-532
Target: Rs. 620
Stop Loss: Rs. 475
Time frame: Three months
Derivatives & Quantitative Outlook
Broader markets have started outperforming along with the Nifty. Select stocks from the pharma sector may witness renewed momentum amid a sustained broader market recovery. Stocks that were relative underperformers are likely to witness fresh momentum. Sun Pharmaceutical is one stock that has significantly underperformed its peers.
The open interest in the stock has been on a declining trend since March 2020 due to a short covering rally. However, significant addition was seen in the stock from the middle of the November series at lower levels indicating fresh long additions. As the stock is able to move above its August breakdown levels of Rs. 530, continued momentum is expected in the short-term.
For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_QuantPick_SunPharma_Dec20.pdf
Shares of SUN PHARMACEUTICAL INDUSTRIES LTD. was last trading in BSE at Rs.539.75 as compared to the previous close of Rs. 511.55. The total number of shares traded during the day was 555292 in over 11450 trades.
The stock hit an intraday high of Rs. 542.45 and intraday low of 514.75. The net turnover during the day was Rs. 296957264.