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Published on 1/08/2020 2:17:56 PM | Source: ICICI Direct

Gladiator Stocks - Buy Alkem Laboratories Ltd For Target Rs. 3,090 - ICICI Direct

Posted in Broking Firm Views - Short Term Report| #Pharma Sector #Trading Report #Alkem Laboratories Ltd #ICICI Direct

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Alkem Laboratories (ALKLAB): Higher base at 52 weeks EMA, breakout above 11 week’s range augur well for next up move…

* The pharma space continues to remain the key outperformer since the equity market bottomed out in March 2020. The share price of Alkem Laboratories remains in a strong up trend and has generated a breakout above the last 11 week’s consolidation range (| 2580-2222) signalling resumption of up move and offers a fresh entry opportunity

* Structurally, the stock has recently rebounded forming a higher base at the rising 52 weeks EMA (| 2295) as can be seen in the adjacent chart. Time wise, it has already taken 13 weeks to retrace just 61.8% of previous six week’s rally (1882- 2879). A slower retracement and a higher base at the 52 week’s EMA highlights a robust price structure

* We expect buying demand to emerge around | 2400-2420 levels in case of any corrective decline as it is the confluence of last two weeks almost identical lows around | 2415 and the 61.8% retracement of the current up move (| 2222 to 2718)

* We expect the stock to continue its up move and head towards | 3090 in the medium term as it is the 138.2% external retracement of the previous decline (| 2879-2222) at | 3090

 

Buy Alkem Laboratories Ltd @ 2650-2710 Target  3,090 SL 2,398.00

 

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