Here’s why Mehul Kothari is bullish on Glnemark Pharma, Muthoot Finance
Target: Rs 460
Stop Loss: Rs 405
Glenmark Pharma has observed a steep fall of 49 per cent between July 2021 and June 2022. Since then the stock has been consolidating between Rs 360-400, and it has made a solid base near Rs 375 level.
On the weekly scale, the said counter has formed an Inverted Bullish Hammer near support zone along with weekly RSI (relative strength index) has formed an impulsive structure which is adding more confirmation for upside in coming days.
In line with above technical rationale Glenmark has broken its previous trading range of Rs 370-410 and closed well above it on weekly scale.
Target: Rs 1,175
Stop Loss: Rs 1,085
After the free fall started from November 2021 till June 2022 which resulted in a 43 per cent decline in price. On a weekly scale the counter has formed a bullish shark with potential reversal zone (PRZ) of Rs 960-990 along with double bottom near mentioned PRZ which is adding more confirmation for early reversal in said counter.
From indicator perspective, Weekly RSI (relative strength index) has formed a complex structure along with the MACD bullish cross which further confirms upside for the stock.
(Mehul Kothari – AVP – Technical Research, Anand Rathi Shares & Stock Brokers. Views are personal).
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