1) Sun Pharma is India's leading Pharma company in India. The company enjoys the leadership position and demand highest valuations among Pharma Stock fraternity.
Price Volume Analysis
2) The stock Declined to 970 on June 16th and rebounded since then to close today at 1110 Rs (+14%) without any correction. RSI at around 72 indicates over bought situation (Chart 1)
3) Today though stock has shown fatigues. After making the highs of 1125 Rs today, the stock steadily declined to close at Rs. 1110.
4) Volume has too declined by 23% and Delivery volumes by 30% which also points to consolidation or some correction in the coming days.
5) On the technical charts, the stock shows some support around 1090 Rs and then 1068 Rs.
6) In the midst of it, we may Sell the stock at around 1105-1115 Rs with stop-loss around 1130 and target levels of 1090 and 1068 Rs where support level exists.
7) Derivatives traders can buy 1080 Put and Sell 1060 Put which gives risk to reward ratio of 1:3. As per today's closing price, one may earn maximum profit of Rs. 15 per share and maximum loss exists at 5 Rs per share.
