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India Infoline puts SELL on Sun Pharma

India Infoline puts SELL on Sun Pharma
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First Published: Mon, Oct 13 2008. 10 32 AM IST
Updated: Mon, Oct 13 2008. 10 32 AM IST
Sun Pharma recorded its 52-week low of Rs890 in January 2008. Since then, it rallied steadily to record 52-week high of Rs1,557 in early September 2008.
Weekly chart suggests that the price movement since March 2008 till date has occurred in a well defined Rising Channel formation between price levels of Rs1,182-1,540. The last weekly closing price confirms a break down from the Rising Channel formation as highlighted in the above figure.
The stock has also closed below its 200 day moving average (DMA) for the first time since late January 2008. The weekly RSI as well as the MACD are exhibiting negative divergence, indicating weakness in the trend.
In view of the above mentioned technical evidences, we recommend traders to sell the stock at higher levels to resistance of Rs1,350-1,390 levels, for target of Rs1,180 and Rs1,100. A stop loss of Rs1,465 is recommended on all trading short positions.
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First Published: Mon, Oct 13 2008. 10 32 AM IST
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