I am expecting recovery in pharma sector and hence I wish to buy Shilpa Medicare. What would you suggest?
- Sharad Sanklecha
BUY SHILPA MEDICARE ABOVE RS 688-689
Shilpa Medicare is currently trading at Rs 672. Its 52-week high/low stand at Rs 786.75/Rs 525 made on December 21, 2016 and November 9, 2016, respectively. Considering the daily time frame the stock is trailing at its downward sloping multiple points trendline level of Rs 681. Along with trendline formed from Feb 2017, the stock has also formed an inverse head & shoulders pattern, which has a breakout at Rs 885-889 levels. The volumes are not rising but are justifiable and the 14-period RSI is quoting at 59, which is near its momentum level. Hence, we expect a big move in the stock above Rs 689 on a closing basis. We suggest a buy.