The stock is up by over 1% and trades above the prior day’s high.

Laurus Labs Ltd is a research and development pharmaceutical company that manufactures active pharmaceutical ingredients for anti-retroviral and other therapeutic areas. It is a midcap company with a market capitalization of about Rs 28500 crore. In the last four consecutive years, the company has reported increased revenues and net profits. With such strong growth fundamentals, the institutions have been increasing their stake in the last few quarters. Moreover, mutual fund houses have also included this stock in their portfolio.

The stock of Laurus Labs is displaying strong bullishness in the first hour of Monday’s trading session and is outperforming the broader markets. It is up by over 1% and trades above the prior day’s high.

The stock formed a strong bullish engulfing pattern on 28 January 2022. Ever since the stock has gained over 8% in just six trading sessions. After today’s buying interest, the RSI is just above 60 and indicates strong strength in the stock. Moreover, the MACD line is above the zero line and points towards the bullish nature of the stock. The stock trades above its short term moving averages. The difference between its 20-DMA and stock price is about 5%, which suggests bullish momentum. With ongoing momentum, the stock is likely to surge above its 100-DMA which lies at Rs 539.

In the past one year, the stock has delivered about 55% returns to its shareholders and has outperformed its sector and most of its peers. Moreover, the short term view is also bullish, as evident from the fact that the stock has rallied over 6% in just one week.

Considering its short term bullishness, the stock is well poised to scale higher highs. The strong price action and volume highlight the growing interest among the market participants. Short term traders can expect about 10-15% returns in the short to medium term as per the technical chart.