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Ajanta Pharma Technical Analysis #12: Sell | Target Rs 950 | Arijit Banerjee

OUR RECOMMENDATION

CMP#1181.7
IdeaSELL
Sell Range1200 – 1170
Target1000 – 950
StopLoss*1250
Duration40 – 50 Trading Sessions
Potential Return^17 – 21%
CMP#IdeaSell RangeTargetStopLoss*DurationPotential Return^
1181.7SELL1200 – 11701000 – 950125040 – 50 Trading Sessions17 – 21%

# CMP on Jan 01, 2019
* Maintain recommended StopLoss by daily closing basis.
   Once 1st target hit, reset StopLoss at 1090.
^ 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. In Q2, their consolidated revenue jumps to Rs 544.11 crore as against the year-ago period of 540.38 crore. Net profit dipped 54% year-on-year to Rs 67 crore.

Stock Data
NSE CodeAJANTPHARM
SectorNifty Pharma
52W High1457.75
52W Low895.85
Face Value2

TECHNICAL OBSERVATIONS (WEEKLY)

  • Price made all time high in October 2016. Since then Long term trend is going downwards.
  • Price is moving in a falling channel trend. Every time the price is near the upper resistance, price start falling.
  • Price is now near the upper Resistance line. According to past historical event, a fresh short will be a good idea.
  • This way, we are not against the trend, but trading with the trend.
Ajanta Pharma Weekly Chart
Ajanta Pharma Weekly Chart

TECHNICAL OBSERVATIONS (DAILY)

  • Candlestick pattern is showing bearishness.
  • Price is moving upwards, while the ROC (3) is moving downwards. There is a clear divergence in Price and ROC movement. This indicates that the Momentum is falling.
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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