Sun Pharma Share Price 26th Nov 2015

Sun Pharma Share Price 26th Nov 2015

Sun Pharma Share Price has resistance at 745. If Sun Pharma stock price manages to cross resistance of 745 today ) we can safely conclude that the current down cycle which started on 20th Aug 2015 has come to an end and we could see Sun Pharma Stock price headed for 772 as the first target of current move up. (Nse spot price mentioned and level valid only for today 26th Nov 2015, if share price crosses 745 on Friday 27th Nov 2015 reversal will not be confirmed and we will need to see more parameters for reversal of trend confirmation. The up move was triggered by news of Taro which is Sun Pharma’s subsidiary company said in its annual general body meeting that it will not invest in Wind Energy business. Sun Pharma today is leading the Nifty basket higher.

Technically there are divergences seen on price charts and volume charts which is also indicating that down move is nearing the end and we could see some relief rally in the near term but until and unless we cross 745 today we will still wait and watch as we are very conservative traders. The Stock price has corrected from hefty valuations and longer term investments in the same should be done at more cheaper prices when Nifty comes below 7400 at this juncture any buying even if we get short term reversal confirmation should purely be taken as a short term trading opportunity and we must just get in and out as we do not see the stock price sustaining higher after the final tezi / bullish cycle.

Sun Pharma News

News flow for the company has not been good of late. Q2 numbers were below estimates and the nigger issues for the company has been Halol Plant. The plant has been notified under official action initiated category and it simply means that if corrective action is not implemented by the company immediately then there is high probability for USFDA to issue a warning letter to the company over Halol plant. In addition to Sun Pharma’s own problems there could be impending problems / compliance issues due to acquisition of Ranbaxy. Will be very interesting to see what kind of Q3 numbers come out from Sun Pharma. Is the company able to boost sales and revenue from USA markets where it has a robots infrastructure need to be seen?

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