Lupin Ltd: Technical Analysis - December 2024

Dec 26, 2024

Lupin Ltd (NSE: LUPIN) has displayed an impressive uptrend throughout 2024, supported by a strong ascending trendline (yellow). The stock has experienced healthy corrections along the way, forming a well-defined channel (blue) during its recent consolidation phase. Let’s break it down:


Key Observations:

• Uptrend Continuation:
  The broader trend remains bullish, with the stock bouncing off the lower boundary of the channel and showing signs of a potential breakout above the resistance.
  
  
• Channel Pattern:
  A descending channel formation suggests a corrective move within the larger uptrend. The breakout towards the upper end of this channel indicates renewed buying interest.
  
  
• Support & Resistance Levels:Key Support: ₹1,697.50 (red horizontal line), which aligns with a previous demand zone.
  Immediate Resistance: ₹2,200 - ₹2,250, marking the channel breakout zone.
  

Outlook:
A sustained move above ₹2,200 could trigger a new leg of the rally, targeting ₹2,400 and beyond. On the downside, ₹1,900 and ₹1,697.50 will act as crucial supports in case of a pullback.


Trading Strategy:

• Bullish Bias: Buy on dips near ₹2,100-₹2,150 with a stop-loss at ₹1,900.
  
• Breakout Play: Enter on a decisive close above ₹2,200 for potential upside.
  

This technical setup provides a promising outlook for Lupin, making it a stock to watch in early 2025.