sgor1980

AJANTAPHARMA : A Neutral View

NSE:AJANTPHARM   AJANTA PHARMA
Dear Reader,

The stock of Ajanta Pharma             has witnessed a long "Bull Run" since its low of 6.04 made on 9th             April,2009, and looks like there still remain space for its bigger "Bull Run" in years to come than what has been witnessed untill date. It will be too early to predict the future price of it as of now. However, I have tried my level best placing possible wave counts, at various degrees of time cycle, for the further reference of the readers, in the chart shown below this post.

For now, the stock of Ajanta Pharma             looks to be in a corrective zone and possibly forming a double (WXY) or triple (WXYXZ) zigzag kind of complex corrective pattern, as shown in the chart above. Those who follow Wave Principle would recognize the same, and their opinions, critiques and comments are welcome.

From the top of 2125 to the low of 1526.65, wave "A" (circled), giving due consideration to its internal wave counts looks to be an impulsive wave. The counter trend of this current fall has already retraced more than 50% of this total fall at 1832. Besides, the stock can be bought only it it crosses above the resistance line drawn. The resistance point of this line is around 1825, the 50% retracement point of the total fall of 598.35 (2125-1526.65).

The stock may inch up further, if it crosses resistance line, to the target of 1896 & 1996, being 61.80% and 78.60% retracement level. However, one should be cautious before entering into the stock on longer side and keep 1800 level as stoploss for the long position taken after the breach of the resistance line.

Secondly, the stock of Ajanta Pharma             can be sold once the support line of the triangle, drawn on MACD chart, is breached or if the histogram of MACD turns out negative. So, wait and watch on which side the stock opens up the opportunity for, "buy or sell?".

Below is the monthly chart of the stock of AJANTAPHARMA.



Disclamer:
All views, charts, comments, post or any materials of any kind discussed, published, posted and/or commented are for educational purpose only and not meant to be an advice to trade.
Trade active: Buy Ajanta Phara @1835, Target 1896, 1946 & 1996 with sl 1790.
Comment: The stock of AJANTAPHARM gave a break above its resistance line, touched today's high of 1852 and got settled at a crucial support point, which was acting as a resistance, i.e., 1825, a 50.00% retracement level of total fall from 2125 to 1526.65.
However, there should be a strict stop loss of 1790, as the breakout that the stock has witnessed may turn out to be a false breakout, just to make trader and investor confuse and unwind or take wrong decision.
Besides, as the stock has given a break out above its resistance line as well as 50% retracement level, one should expect a level anywhere between or upto 1896 to 1996.
Trade closed: stop reached: Trigger Price : 1790
Current Price : 1800.

Any long position kept will be unhealthy and dangerous to your portfolio value.
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