Top Trending stock: Sun Pharmaceuticals Ltd

When the overall market sentiment is dented, the stock has risen over 1% and is among the top three gainers of Nifty stocks.

Sun Pharmaceutical Industries Limited is one of the top leading pharmaceutical company, engaged in the business of branded pharmaceutical generics, speciality pharma products, over-the-counter pharma products, anti-retroviral and APIs. With a market capitalization of near Rs 2,00,000 crore, it is a well-established player in the pharma industry of India. The company has been able to generate increasing profits and revenue in the last few years.

With strong fundamentals, the company has attracted institutions, which hold nearly 35% of the company’s stake. The promotors hold a little over 50% of the stake, while the HNIs and public hold the remaining portion of the company. Thus, the company is favoured for long term investment as well.

In the past one year, the stock has generated about 42% returns to its shareholders and has outperformed Nifty by a huge margin. Today, when the overall market sentiment is dented, the stock has risen over 1% and is one of the top three gainers of Nifty stocks.

The stock was under severely selling pressure in the past six trading sessions, which saw the stock slip nearly 7%. Interestingly, with today’s strong price action, the stock has formed a bullish engulfing pattern of the chart. Moreover, the stock has taken support near its 50-DMA and 100-DMA before shooting up. Today’s bullish sentiment in the stock is backed by above-average volume, which shows buying pressure at lower levels. The Elder Impulse System has given a fresh buy signal, while RSI has also taken support at 43 and now heads to towards 50.

With the stock likely to have found a bottom, it looks set to test its near-term resistance zone of 840-850, and possibly its all-time high of Rs 870 in the medium term. The stock is expected to continue the bullish momentum in the coming days, and traders can consider this stock for decent profits in the short-to-medium-term. Meanwhile, safe investors can continue to buy this stock on every dip.