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Lupin Technical Analysis #100: Sell | Target Rs 755 | Arijit Banerjee

OUR RECOMMENDATION

CP#786.05
IdeaSELL
Sell Range796 – 786
Target755 – 740
StopLoss*812
Duration12 – 15 Trading Sessions
Potential Return^4 – 6%
CP#IdeaSell RangeTargetStopLoss*DurationPotential Return^
786.05SELL796 – 786755 – 74081212 – 15 Trading Sessions4 – 6%

# CP – closing price on Dec 03, 2019
* Maintain recommended StopLoss by daily closing basis.
   Once 1st target hit, reset StopLoss at 771.
^ The returns are calculated based on CP#

COMPANY OVERVIEW

Lupin Limited, a pharmaceutical company develops, produces and sells a range of generic formulations, biotechnology products and active pharma ingredients worldwide. The company offers formulations for diabetology, paediatrics, anti-infectives, cardiovascular, asthma and anti-tuberculosis. It also develops various therapies for rheumatoid arthritis, oncology, ophthalmology and osteoporosis. Lupin limited reported a massive loss of 124.40 crores for the September 2019 quarter, against a profit of Rs 268.10 crore in the year-ago period.

Stock Data
NSE CodeLUPIN
Sectoral IndexNifty Pharma
52W High906
52W Low646.3
Face Value2
Relative Performance_Lupin vs Nifty Pharma Index

TECHNICAL OBSERVATIONS (WEEKLY)

  • Attached weekly timeframe chart of Lupin Limited is signalling that the stock price was moving in a downward slopping consolidation pattern which was bounded by strong support and resistance line in the last 15 months.
  • The stock price has placed near the Upper bound of a sideways range and based on historical price pattern we are expecting price to fall off from here.
Lupin Weekly Chart for Technical Analysis
Lupin Weekly Chart

TECHNICAL OBSERVATIONS (DAILY)

  • The daily chart of Lupin limited indicates that after a 16 days price rally, the stock has given a downside breakout of the trend line indicates negative sign.
  • The breakout of an RSI(14) trendline might indicate a potential price reversal. Bear in mind that the break of an RSI trendline usually providing an advance warning, as well as a very early opportunity to go short.
Lupin Daily Chart for Technical Analysis
Lupin Daily Chart

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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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