Sun Pharma: Price targets using Elliott wave!
Jul 31, 2024
We published about Sun Pharma in July 2024 and predicted a possibility of good returns in the upcoming trading sessions in our Monthly Research report. Check out the research we had published on 16th July 2024.
Below is the chart which shows a detailed analysis of Sun Pharma which helped to derive targets of 1700 using Elliott Wave technique. We recommended this stock when it was trading near 1575-1580 levels and was successfully able to catch the up move within just 7 trading sessions.
Sun Pharma Weekly Chart (Anticipated on 16th July 2024)
Sun Pharma Daily Chart (Anticipated on 16th July 2024)
Wave Analysis on 16th July 2024
Amidst sideways consolidation in the pharmaceuticals sector since April 2020, Sun Pharmaceuticals in particular has seen a bullish trend.
Sun Pharmaceuticals has remained in a strong rangebound upward trend as compared with its peers since June 2021. As seen, it in the above chart all the peers are moving in sideways or consolidation manner as against Sun Pharmaceuticals which has continued its strong upward momentum, and is expected to provide better returns in coming month.
Sun Pharmaceuticals has a great potential to trade around the lifetime highs in the coming weeks. This particular stock has seen a strong rally since April 2020. As seen on the above Weekly chart, stock is moving well within an upward sloping channel. Recently prices faced support from the base line(red) of the Ichimoku cloud and moved on the upside. Support as per this, is near 1480 levels.
The daily chart depicts an upward trendline and given the expensive readings on Nifty as of now it is better to buy it on dips for better risk reward for this stock. Prices moved up by taking support from the trendline. Supertrend has also just turned green which is a positive sign.
As per wave perspective, stock is moving well in an impulsive manner and following classic Elliott wave theory. Currently, Primary wave 5 is moving on the upside. Wherein, internal wave 2 got completed near the channel support on 22 May 2024 and since then the rise is in form of wave 3.
In a nutshell, trend for Sunpharma looks positive and we are expecting it to make fresh record high in near future. A decisive breakout above 1600 can lift the price higher towards 1700 as long as 1520 holds on the downside which is an important support level.
Sun Pharma Daily Chart (Happened on 31st July 2024)
Happened: Post recommending this stock, prices moved as expected, stock showed a good rally and achieved our target of 1700 levels. In today’s session prices made a lifetime high of 1730.9. This up move of more than 11% we have been able to capture with the help of Elliott wave, along with price indicators.
For now, trend remains positive for this stock. One can use buy on dips approach to ride the trend as long as 1640 remains intact on the downside.
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