Quant Pick - Torrent Pharmaceuticals - ICICI Direct

Recommendation

Buy Torrent Pharmaceuticals in range of Rs. 2500-2550
Target: Rs. 2950
Stop Loss: Rs. 2300
Time frame: Three months

Derivatives & Quantitative Outlook

Pharma stocks have remained quite resilient in the last couple of trading sessions whereas broader markets have come under pressure. Relatively, NSE Pharma Index has outperformed the Nifty in the last couple of weeks. We believe a fresh uptrend may be seen in the pharma space where stocks like Torrent Pharma are likely to outperform.

The stock has witnessed continued long liquidation since the August 2020 series. During this period, it shed almost 40% open interest while it has corrected almost 25% from its peak. The stock has bottomed out near its long term support level of Rs. 2300. Currently, considering prevailing low leverage, there is ample room for increase in open interest. We expect long additions in the stock once it sustains above Rs. 2550 levels.

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_QuantPick_TorrentPharma_Apr21.pdf

Shares of TORRENT PHARMACEUTICALS LTD. was last trading in BSE at Rs.2559.6 as compared to the previous close of Rs. 2520.3. The total number of shares traded during the day was 7362 in over 695 trades.

The stock hit an intraday high of Rs. 2577.9 and intraday low of 2518. The net turnover during the day was Rs. 18864936.

Source : Equity Bulls

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