Alembic Pharmaceuticals (₹530.8): Buy

Investors with a short-term horizon can buy the stock of Alembic Pharmaceuticals at current levels. On Tuesday, the stock gained 3.4 per cent with good volume, breaking above a key resistance at ₹520 and its 200-day moving average as well.

After a medium-term downtrend, the stock found support at around ₹415 in late May. Taking support from this level again in early June, the stock began to move upwards triggered by the positive divergence in daily indicators. Since then, the stock has been in a short-term uptrend.

The stock trades well above its 50- and 200-day moving averages. The daily relative strength index has re-entered the bullish zone from the neutral region and the weekly RSI is moving higher in the neutral region towards the bullish zone. Both the daily and weekly price rate of change indicators feature in the positive territory implying buying interest.

Short-term outlook is bullish for the stock. Traders with a short-term view can buy the stock with a stop-loss at ₹520 . Targets are ₹552 and ₹562.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

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