Alkem Laboratories - Gladiator Stocks - ICICI Securities

Strategy

Buy Alkem Laboratories in the range of Rs. 2650.00-2710.00 for target price of Rs. 3090.00 with a stop loss of Rs. 2398.00. Time Frame: Six months

Technical View

Pharma space continues to remain as the key outperformer since equity market bottoming out in March 2020. The share price of Alkem Laboratories remain in strong up trend and has generated a breakout above the last 11 weeks consolidation range (Rs. 2580-2222) signalling resumption of up move and offers fresh entry opportunity.

Structurally the stock has recently rebounded forming a higher base at the rising 52 weeks EMA (Rs. 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 weeks rally (1882-2879). A slower retracement and a higher base at the 52 weeks EMA highlights a robust price structure.

Weekly MACD sustaining in positive territory and is at the cusp of generating a buy signal moving above its nine periods average thus validates positive bias.

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

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_GladiatorStocks_Alkem_Jul20.pdf

Shares of Alkem Laboratories Ltd was last trading in BSE at Rs.2671.15 as compared to the previous close of Rs. 2546.1. The total number of shares traded during the day was 15154 in over 2784 trades.

The stock hit an intraday high of Rs. 2715 and intraday low of 2538.2. The net turnover during the day was Rs. 40093861.

Source : Equity Bulls

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