Abbott India: 28% Upside in few weeks (Read below)
1. Abbott India has posted strong Q4 numbers signalling a good quarter for Pharma sector overall
2. The Nifty Pharma Index has shown a bounce back from 18400 levels today with potential to rally to 19200 or beyond to 20000 if other companies post strong results too in the coming days
3. Nifty 50 bounced back from 22000 levels too today
4. If both Nifty and Pharma Sector continues the rally, then Abbott is sure to achieve its target in coming days (rather quickly)
Technicals:
1. Abbott has created a rounding bottom pattern with neckline at 28500 and base at 25500. The target comes at 33500 based on the pattern. This gives an upside of about 28% from current price
2. The price have been rejected multiple times by the blue trendline. Watch for a clear break above this trendline (around 26400 levels). A strong close above this line will indicate a bullish move going forward
3. The price is above the 200D SMA (purple line) but below the 50D SMA (orange line)
4. Currently the price has broken above the 20D SMA although got rejected by the upper Bollinger band (green line and blue bands) during intraday hours
Strategy:
1. Look for a clear closing above the trendline with strong volumes in next trading sessions
2. Look for rally in both Nifty and Pharma sector
3. If all parameters match, take entry around 26400-26500 levels with stop loss around 25350
2. The Nifty Pharma Index has shown a bounce back from 18400 levels today with potential to rally to 19200 or beyond to 20000 if other companies post strong results too in the coming days
3. Nifty 50 bounced back from 22000 levels too today
4. If both Nifty and Pharma Sector continues the rally, then Abbott is sure to achieve its target in coming days (rather quickly)
Technicals:
1. Abbott has created a rounding bottom pattern with neckline at 28500 and base at 25500. The target comes at 33500 based on the pattern. This gives an upside of about 28% from current price
2. The price have been rejected multiple times by the blue trendline. Watch for a clear break above this trendline (around 26400 levels). A strong close above this line will indicate a bullish move going forward
3. The price is above the 200D SMA (purple line) but below the 50D SMA (orange line)
4. Currently the price has broken above the 20D SMA although got rejected by the upper Bollinger band (green line and blue bands) during intraday hours
Strategy:
1. Look for a clear closing above the trendline with strong volumes in next trading sessions
2. Look for rally in both Nifty and Pharma sector
3. If all parameters match, take entry around 26400-26500 levels with stop loss around 25350