Comments
Though the long-term trend remains weak for Sun Pharmaceutical Industries (₹473), in the short term, the stock may show some resilience. It finds immediate resistance at ₹525 and a major one at ₹597.
A close above the latter will even alter the medium-term outlook to positive and lift the stock to ₹621. Sun Pharma, however, finds immediate support at ₹430 and a close below that will reignite the downtrend for the stock.
F&O pointers: The Sun Pharma futures witnessed a rollover of 25 per cent to April series, which is quite healthy. .
Strategy: Expecting a bounce back, we suggest traders to go long on Sun Pharma April futures, which currently quotes at ₹475.50. While a stop-loss can be placed at ₹460, which can be shifted to ₹481 if the stock moves past that level. Traders should keep in mind that the market lot is 1,100 shares and this strategy involves huge margin commitments. Risk-averse traders can stay away from this strategy.
Traders can aim for an initial target of ₹498 or even ₹525, with a trailing stop loss. This position can be held for at least two weeks. Alternatively, they can consider buying ₹480-April call option on Sun Pharma that closed around ₹15. Traders should exit the position, if the premium dips to ₹8 or rises to ₹25.
Follow-up: The stock of Eicher Motors moved on expected lines and hit targets.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.