SUNPHARMA trade ideas
Sun Pharma on a Symmetrical Triangle formationNext major move can only be determined after a valid breakout
Sunpharma - Buy set up..........Sun Pharma after a zig zag correction.....made a higher low....Buy with a tgt of 900
SUNPHARMA TO GO LONGThe Break of 760 Could lead to 775 - 780 Levels
1. The company has decided to buy back a bunch of shares @ Rs.900 per share.
Sun Pharma - Levels To Buy - 6/22/2016We always have kept a soft corner for Pharma sector in India. To outperform broader market indices with quality portfolio, one must have banks and Pharmaceutical companies in it. The word 'Quality' is very important here. We are not talking about loading up the portfolio with junk companies which can go 5 to 500 in a week and come crashing back the next day. Please avoid such manipulated stocks if you want to build long term wealth.
Just to outline fundamental arguments for Pharma sector outperformance here are few points.
1.) India is going to remain one of the biggest drug manufacturing country in foreseeable future.
2.) World's biggest pharma companies don't like to manufacture the drugs by themselves because imagine your manufacturing shutdown by just one notice from FDA. So they will always outsource the manufacturing to multiple suppliers from India and other places to diversify the supply chain. Thus if one is closed due to problems, switch to another !
3.) Nobody like to deal with regulatory headache every day and Pharmaceuticals need to adhere to one of the stringent regulatory requirements in USA and Europe.
You can research the export numbers yourself ! ( little homework ;) )
The trick to trade a pharma company is, buy them cheap when they are facing problems and sell it when they are reporting blockbuster results and stock skyrockets. Well 'sell' here means, to take profit. Don't short stocks if you are not skillful enough.
For Sun Pharma, we are just brushing up our old playbook posted here last year.( bombaybulls.com ) This example shows, the importance of patience in trading stocks. Our mentioned support level where we would like to buy came in after 3/4 months. So you need to have patience to wait for the trade to come to you rather than chasing it. Besides, only partial position filled in because one of the trading rule is never to go all in at any one point. So benefit is that even if you are wrong in your assumption about stock going higher, there are good chances that you can escape with little or no harm.
SUNPHARMA - Weekly Chart - Long in the next few WeeksEven though SunPharma has been falling like a bag of rocks in the past many days, technically , it does look like it could recover and cross 900. But this will not happen in a day or two, 3-4 weeks
Andrew's pitchfork for sun pharmaDoes it look like Andre'w pitchfork ? If it is, then it has huge upside.
