SUNPHARMA ANALYSIS

Jun 1, 2020

The CNX Pharma Index is aiming towards the 10,000 mark and Sunpharma seems good to reach 500+ levels soon.

In 75min CB, the price was unable to close above its resistance. If the resistance is broken now, an upmove towards 490-495 can be seen.

Above 490 ,the next resistance zone is around 504 level.
A long trade will be initiated only if the resistance is broken.

However, Nifty 50 and CNX Pharma's correlation coefficient is on the decline in weekly analysis as seen in the image below :



So,as per the data, if Nifty inches up higher in upcoming days,there could be a fall in the Pharma stocks which could make this trade a risky bet.

Weekly Chart :




This is just an analysis by me and not a trading call. Kindly trade as per your own RR.

Jun 1, 2020

Note

As expected, Nifty Pharma traded flat today while nifty was on a run.
Sunpharma opened around 482 and wasn't able to give a close above the resistance.
482 zone became a new resistance which we saw being tested again.Since the latest resistance of 482 was not breached ,no trade was initiated.

Also, as mentioned earlier,CNX pharma was flat and a long oppurtunity would be betting against the sectoral trend.

Now,Sunpharma is taking support at 458 level and a slight fall in nifty can help it bounce back upwards to 470+ after which we wait for the break of 482 level.

Jun 2, 2020

Note

Trade still not active.

Jun 3, 2020

Note

While the whole market is up, Sunpharma is unable to cross 482 level.
Will not be initiating trade in this stock now. Will just analyse my chart after a few days.

Jun 3, 2020

Order cancelled

Jun 5, 2020

Note

All targets were hit after crossing 482.
I did not trade in this as i mentioned in the previous comment.