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Ajanta Pharma Technical Analysis #60: Sell | Target Rs 900 | Arijit Banerjee

OUR RECOMMENDATION

CMP#960.3
IdeaSELL
Sell Range970 – 950
Target900 – 890
StopLoss*1020
Duration20 – 25 Trading Sessions
Potential Return^6 – 7%
CMP#IdeaSell RangeTargetStopLoss*DurationPotential Return^
960.3SELL970 – 950900 – 890102020 – 25 Trading Sessions6 – 7%

# CMP on June 14, 2019
* Maintain recommended StopLoss by daily closing basis.
   Once 1st target hit, reset StopLoss at 930.
^ The returns are calculated based on CMP#

COMPANY OVERVIEW

Ajanta pharma, established in 1979, operating in Pharma & Healthcare sector, having 6 manufacturing units in India. This drug manufacturing company engaged in developing formulas, producing and marketing tablets, ointment, capsules and lotions. Most of its revenues generated from developing countries like Africa and India.

Stock Data
NSE CodeAJANTPHARM
Sectoral IndexNifty Pharma
52W High1294
52W Low900.1
Face Value2
Relative Performance_Ajanta Pharma vs Nifty Pharma Index

TECHNICAL OBSERVATIONS (WEEKLY)

  • The share price of Ajanta Pharma has been a declining trend since its lifetime high of ₹ 2125 registered during October 2016.
  • There is a steady resistance line which is moving downwards along with price fall. 
  • Presently, the stock price has placed near the Upper bound of a downward sloping channel and based on historical price pattern we are expecting the price to fall off from here.
Ajanta Pharma Weekly Chart
Ajanta Pharma Weekly Chart

TECHNICAL OBSERVATIONS (DAILY)

  • In the daily chart, we are witnessing bearish MACD crossover.
  • The momentum oscillators are also suggesting a big downside in the stock. From the last few weeks, serious delivery selling was seen in the stock with negative price action which indicates a big downside soon.
Ajanta Pharma Daily Chart
Ajanta Pharma Daily Chart

MONEY MANAGEMENT AND TRADING RULES

1)  It’s advisable not to enter/exit beyond the recommended range.
2)  Strictly follow the StopLoss as mentioned. Honour it.
3)  Use trailing StopLoss to retain profits.
4)  Diversify trading capital into our other technical recommendations.
5)  Risk only the money what you can afford to lose. Hedge accordingly.

ANALYST SUMMARY

This research analysis is prepared by Arijit Banerjee, CMT, CFTe. An engineering graduate developed an early interest in Trading since the age of 20. He is a Chartered Market Technician (CMT) accredited by CMT Association USA, the leading global authority of Technical Analysis and also has been honoured by Certified Financial Technician (CFTe) from the International Federation of Technical Analysts (IFTA), USA. His contribution to the market research was recognized by SEBI, the Regulatory Body of Indian financial market and given him the registration number INH300006582 as a Research Analyst. Over the years, he has gained experience in Technical Analysis with a demonstrated history of working in different asset classes. Himself as a trader, he has trained and continues training novice and experienced traders to become successful, confident and profitable in the financial market.

Disclosure

The views expressed herein are based solely on information available publicly/internal data/other sources believed to be reliable, but is not necessarily all-inclusive and is not guaranteed as to accuracy. The recommendations provided herein is solely for informational purposes and are not intended to be and must not be taken alone as the basis for an investment/trading decision. Trading and investing are subject to market risk and the securities discussed and opinions expressed herein may not be suitable for all investors. To read the full disclosure, please click here.

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