I am holding Natco bought at Rs 740 considering it to be a support, but the stock fell after that. What to do now?
- Premchand Bhandari
HOLD NATCO PHARMA WITH A STOP LOSS OF RS 678
Natco Pharma is currently trading at Rs 720.45. Its 52-week high/low stand at Rs 1061.95/Rs 637.40 made on December 15, 2017 and October 9, 2018, respectively. The stock gave an ascending triangle pattern breakdown on September 27 at Rs 766 and thereby witnessed a consistent fall of up to its 52-week low levels. The stock hit a hammer-like pattern and thereby witnessed reversal, where we can see a V-pattern in the making. In case the stock hits above Rs 760-770 levels on a closing basis, we may see the stock rallying upwards. Otherwise, it would retreat again after a pullback either from the current levels or after testing the lower trendline. We suggest you to hold with a stop loss of Rs 678