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Buy Lupin with a target of Rs 1,225, says HDFC Securities

Lupin has corrected over 50% from its all-time high of Rs 2,129 registered in October 2015

HDFC Securities  |  Mumbai 

Market, Nifty, Sensex

 
Top trading ideas by technical analyst (PCG desk) at HDFC securities:

Buy Dr Lal Path Lab between Rs 864-840

CMP: Rs 864
Stop loss : Rs 830
Target: Rs 925

The stock  has  seen  healthy  correction of 40% from its all-time high of Rs 1260 registered  in  November  2016.  In the current month, stock formed bullish double  bottom  formation  at Rs 760 levels. The same level was last seen in June 2016. Oscillators on the weekly and monthly charts have exited the oversold zone. Short-term  moving  averages have  started  moving up, indicating bullish trend reversal. 

Considering the technical evidences discussed above, we recommend buying the stock between Rs 864 and Rs 840, for the target of Rs 925, keeping stop loss at Rs 830.

Buy between Rs 1156-1135

CMP: Rs 1,156
Stop loss: Rs 1,120
Target: Rs 1,225

Stock has seen healthy correction of more than 50% from its all-time high of Rs 2,129 registered in October 2015. Monthly and weekly oscillators have reached   extreme oversold territory. However, on  the  daily  charts, oscillators like RSI and MACD have been developing positive divergence, which indicates that bearish  momentum  is  exhausting.  is a bell-weather pharma stock and has rewarded its investors handsomely over the past decade. Nifty Pharma Index has been outperforming for last two months. has surpassed the crucial resistance of Rs 20 and 50-DMA recently.  

Considering the technical evidences discussed above, we recommend buying the stock between Rs 1156 and Rs 1135, for the target of Rs 1225, keeping stop loss at Rs 1120.

Disclaimer: The analyst may have positions in any or all the stocks mentioned above.

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