LUPIN trade ideas
Lupin, 200 DMAOnce upon a time (3-4 yrs ago) it was a great stock. Now beaten down just like many other pharma stocks. However of late there is some perceptible recovery in select pharma stocks. Lupin created a small base and trying to limp up. After more than one year price today has reached 200 DMA and this is worth noting since it changes the trend.
Lupin - Long Term View - 5/10/2018Lupin LTD is still stuck in well entrenched downtrend. The moment it tries to gather itself up, some bad news hits the stock. Latest development is that USA is moving towards some kind of price manipulation of drugs. This news has hit majority of Indian pharmaceutical company stocks and they all are moving in the same downward direction.
But well, we all know how the collusion between politics and industry works. Especially pharma industry is difficult to take on. Eventually there will be some ways to boost the profitability again. My view is to take advantage of any such development and buy pharma stocks. Next interesting range to trade Lupin will be around 600.
Lupin, 200 DMAHow 200 DMA decides fate of a stock. Lupin is a good example. Have a look at this long-term chart. Several time price reached 200 DMA during uptrend. When price was in down-trend, price tried to reach again to cross this significant MA but failed. Even it could not surpass 100 DMA. Now we can watch price to come close to 100 DMA for trading on the short side. Smart money chases 200 DMA to track the trend.
Lupin - Long Trade - Investment - Price ActionPrevious Lupin short term trade stop los hit.
However this chart is for Medium to Long Term perspective.
Good buy zone 973-993
De-risk the trade at 1050 and continue to hold for bigger targets of 1160, 1309 and 1400+
Price is now at second/strong support of 973-993 after breaking previous support of 1010-1020.
Pharma sector had its bad days since last 2years, but now they have cope up the situation and we are seeing a good hold back in prices, making it the best bet again for coming months/years.