SYNGENE
, a leading global discovery, development and manufacturing organization catering to the pharmaceutical and biotech industries, is under the spotlight for this week's technical analysis. Entry Logic 🎯:
The stock has recently crossed its 50-day moving average (MA) of INR 799, additionally breaching the Fibonacci retracement level of 0.382 at INR 810. These factors, combined with potential bullish crossovers in Exponential Moving Average Divergence (EMD) and Moving Average Convergence Divergence (MACD) (12,26,9), lay down a fertile ground for upward movement. The ideal entry point would be upon a strong opening above INR 810.2 or INR 811.60 (0.5 Fibonacci level).
Target Levels 🎯:
Target 1: INR 823.45
Target 2: INR 843.70
These targets are set based on historical resistance zones and projected upward momentum.
Exit Logic 🚪:
An exit should be considered if momentum drops or reverses before reaching the target levels, or upon hitting the targeted price points for desired profits.
Stop Loss ⚠️:
A stringent stop loss is advised at INR 786. This is a slightly aggressive level aimed at limiting losses should the market sentiment change abruptly.
Technical Indicators 📊:
- MACD: Awaiting a bullish crossover to substantiate entry.
- Stochastics: Recent crossover observed, bullish sign.
- RSI: Also in bullish crossover territory.
- %R: Currently in oversell territory - positive.
- Fisher 9: Indicating strong buy signal.
Market Sentiment 🌐:
With the broader Indian market expected to exhibit volatility in the forthcoming week, caution is advisable. The high PE ratio of 64.44 and a modest EPS of 12.06 underscore a relatively high valuation, with a low payout ratio of 4.16.
Recommendation 📝:
Syngene International presents a potentially lucrative short-term swing trading opportunity for aggressive traders. The anticipated bullish momentum, if actualized, could render fruitful returns; albeit the inherent market risks necessitate a robust exit strategy and a firm stop loss.
Disclosures and Disclaimers 📢:
This analysis is for informational purposes only and not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. The report is based on historical data and prevailing market conditions; the future may unfold differently. All investors are advised to conduct their independent research or consult a financial advisor before making any investment decisions.
Trade closed manually:
The entry was made too early. And this was not worth the time dedicated. Will stop, although there has been a recent search in the price. But it is better to come out of this volatile stock