Lupin - Share Price Analysis & Forecast - 7th June

Today's Opening - 772

Today's High - 776

Today's Low - 762

Today's Closing - 767

I am writing on this stock for the first time ever.

Marginal negative closing today, with lower volumes over the last seven days. The 2-day Relative Strength Index has pulled up above 30 since 9th Feb and has remained above 50 over the past nine days. The 20-day Commodity Channel Index too has been positive for the past nine days.

The 14-day Negative Directional Index still remains stronger than the Positive Directional Index since 7th May. However, the gap has reduced drastically over the past nine sessions.

The 12, 26-day Moving Average Convergence Divergence has been negative since 9th May but there's been a good pullback over the past six sessions.

The stock continues to remain below the 5-day Exponential Moving Average over the past five days but today's gap is nearly zero.
  
After losing almost 22% over the past nine months due to various reasons, Lupin is now taking support at 723 which is its long-term support level. After failing to cross the crucial support level of 799, the stock had once again gone back to 745 levels.
Putting the string of negative news over the past 9-12 months behind, Lupin has been finally attracting some positive news with the launch of a new drug in the US and some positive news from Europe. The stock seems to be getting ready for another attempt at crossing the 799 resistance level. Once 799 gets taken, book partial profits and wait for the stock to cross 843. Post 843, the next stopping point could only be 970. Watch out!!

If you find this analysis useful, you might want to read through my latest posts on Tata Motors, Bharti Airtel and Suzlon Energy.

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