Saturday, November 2, 2019

Breakout In LUPIN & 100% H&S In Federal Bank

If we talk about the pharma sector then the overall sector is in the downtrend. Other than this some stocks are making bottom on the chart and ready to change their trend for short to medium term. From this, we have to find the best stock as per the technical chart as well as fundamental and recently our screener has caught one pharma stock i.e. Lupin which is looking good on the chart for the short term.

Technical Overview of 
LUPIN: We can clearly see the Inverted Head & Shoulder breakout has confirmed on the daily chart. The second shoulder is too small in comparison to the first one. However, we can consider this and volume also good on breakout day. After breakout stock has resisted from 200 DMA i.e. around 775. With this breakout, the stock has given confirmation of Higher Low and now trading at Higher High.

We are suggesting you take a buy position here i.e. 766 or wait for dip till 750 to reduce your risk. Keep stop loss of 725 and hold for targets of 780/790/800++. Once stock will cross and closes above 780 then big move expected.



We have found one more stock from the banking sector, which has completed Head & Shoulder on the weekly chart. Nowadays major bank stocks like SBIN, ICICBANK, and HDFCBANK are looking good bullish on the chart and these are leading to bank index.

Technical Overview of FEDERALBNKThis is the perfect example of the Head & Shoulder chart pattern. The reason is that both shoulders have made top around the same levels i.e. 97-98 and every time has given bounce from level of 80 as we have marked on the chart. In last week after 100% completion of H&S stock price has given bounce and closed around weeks high. We are expecting a bounce till the top of the second shoulder.
 
We can long Federal Bank from current levels for targets of 92/98/105. Keep stop loss of 80 on a closing basis.
 


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Disclaimer: The contents produced here are purely for educational purposes. They should not be construed as buy/sell recommendations. I am not a SEBI registered Analyst or Investment Advisor. Readers are advised to consult their Investment advisor before taking any decisions based on the above write-up.
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