SPARC or Sun Pharma Advanced Research Company has been in an uptrend. A look at the daily chart of the stock featured below indicates that the stock has been in a minor downward correction in the recent weeks. This correction has pushed the stock to an area of support.
After consolidating at the support, the sharp rally yesterday indicates the presence of buyers at Rs.130-135 support zone. We are bullish on SPARC and expect a rally to Rs.170-175 range.
The bullish view would be under threat if the stock falls below the support at Rs.130. Stop loss for long positions may be placed at Rs.128. A breakout past Rs.175 could open-up higher targets. But, let’s discuss higher targets once Rs.175 is taken out. Please be reminded that the stock is in the trade-for-trade segment at BSE & NSE.
(The view mentioned here is based on Technical Analysis of historical stock price action. Please read the Disclaimer)