Tuesday, July 26, 2016

Correction likely to be over in Dishman Pharma

Dishman Pharma is a Midcap Pharma company. It is a supplier to major pharma companies world over.

Here is an analysis of Technical Structure of Dishman Pharma. 

Before getting into Dishman Pharma analysis, would like to give you a post analysis update of a related study of Pharma sector (Large Cap Pharma Companies) I had done on 29th June. You can read that analysis here Pharma stocks likely to move over 15% from current levels
Movement in Major Pharma stocks since 29th June is:

Dr Reddy: 12%
Lupin: 13%
Sunpharma: 4.5%
Auropharma: 10%
Biocon: 12%
Lupin: 5%

Coming back to Dishman Pharma - it seems that Dishman Pharma has completed classic correction on monthly chart.

I have marked all the levels here on chart enclosed. You can see that the stock has broken out of resistance near 128-132 in month of Sep 15 and posted a high of 209.90 in Nov 15. Previous high of stock was 227 in Jan 2008. This high acted as a resistance when stock tried to break above all time high in Nov 15. Since then the stock has been correcting.  

The stock has posted a low of 127.95 in Jun 16. This is the same level from where stock had broken in the month of Sep 2015. Now the level is acting as support. We can assume that the stock is trying to take support at this level.

After posting low of 127.95 on 24 Jun 16 stock is showing symptoms of recovery. This is further emphasised by a double bottomish structure on 19 July 16. Currently stock is trading in a range. This range is between 127 and 148. The resistance near 148 (can bee seen on daily chart) may be broken sooner or later. If stock shows some correction from current level, that will be an accumulating opportunity. 
Next major resistance is near 165-170. We can expect stock to cross the hurdles this time to break all time high and start its next bull run.

Disclaimer: The contents produced here are purely for educational purpose. They should not be construed as buy/sell recommendations. I am not a SEBI registered Analyst or Investment Advisor. Readers are advised to consult their Investment advisor before taking any decisions based on above write-up.  

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