Review on Dishman Pharma Analysis

You might recollect I had written an article on Dishman Pharma on 26 July 16. The article was about possible end of correction and start of a new bull run in the stock.

You can read the article with detail analysis of Dishman Pharma at the link below or alternatively read the brief out that article paseted below the link:
Correction likely to be over in 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."

Following chart was posted in the article on 26 July.

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Coming back to current scenario. Charts are indicating that the stock has clearly broken out of its hurdles near 170 and is now trading above all its earlier monthly closing. The stock after reaching the level as indicated by arrow in above chart has come out of the important resistances.While writing this article the price of the stock is around 194. 

This is how current chart looks like:

Markets run in cycles of expansion and consolidation. The stock is currently in a expansion phase. There can be possible consolidation or some correction from current level. You are advised to do the due diligence before entering the stock.

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 Adviser. Readers are advised to consult their Investment adviser before taking any decisions based on above write-up.