This midcap pharma stock soared 5% despite a weak market on July 11; Know its targets here

GRANULES rose over 5% on July 11 and has outperformed the pharma index.

Granules India Limited is a pharmaceutical company, engaged in the business of manufacturing finished dosages and APIs. Based in Hyderabad, it is one of the strong growing midcap companies in its sector.

The stock of Granules India Ltd witnessed a strong breakout from its stiff resistance level of Rs 285 and soared over 5% on Monday. With this, it has taken out near-term resistance and is above its 100-DMA. Interestingly, the stock has jumped about 30% after it formed a double-bottom pattern in just 15 trading sessions. The level of Rs 226 has acted as strong support and the stock saw a good buying interest at this level. It is now inches away from testing its 200-DMA level of Rs 300. Also with its bullish price structure, the volumes have been on a rise recently, which indicates increasing buying momentum in the stock.

After its short-term bull run, the stock has seen all its technical indicators pointing in the north direction. The daily 14-period RSI (66.05) has entered bullish territory and is above its prior swing high. The MACD line is above the signal line and signals an uptrend. Meanwhile, the OBV has also improved, and strong volumetric strength has been seen. The Relative Strength (RS) is in the positive zone and indicates outperformance of the stock against the broader market. Meanwhile, the Elder Impulse System, along with TSI and KST indicators maintain a bullish view of this stock. In short, the stock is expected to move higher from here on.

Considering the price pattern, we can expect the stock to test the level of Rs 320, followed by Rs 350 in the medium term. But during this volatile market condition, the stock might see some weakness if it falls below the 20-DMA level of Rs 260. It provides good trading opportunities in the near term. So keep a watch on the above-mentioned levels.