Technical View:
Alkem is showing a classic Cup & Handle pattern on the daily chart. The stock has formed a rounded base between ₹4,400 and ₹5,400, consolidating after a healthy recovery from its earlier downtrend. Recently, it has created a mini-handle near resistance, signaling that buyers are absorbing supply before a potential breakout.
Price Action: Trading near ₹5,448, close to its recent swing highs.
Moving Averages: Price is above short-term and medium-term moving averages, showing bullish alignment.
Volume: Breakout attempts have been supported by improving volumes, confirming buyer strength.
Relative Strength (RS): RS vs Nifty has turned positive after months of underperformance, suggesting sector rotation in favor of Pharma.
Pattern Implications:
Risk Factors:
Pharma sector is volatile; regulatory news (FDA observations, approvals) can impact sharply.
Stop Loss: A close below ₹5,250 (handle support & short-term MA zone) would negate the pattern.
Trading Strategy:
Entry: On breakout above ₹5,550 with volume.
Target: ₹6,000–₹6,200 (medium term).
Stop Loss: ₹5,250 (on daily closing basis).
Conclusion:
Alkem Laboratories is at the cusp of a bullish Cup & Handle breakout. With positive relative strength, strong volumes, and a supportive pharma sector trend, the stock looks poised for an upward move. Best to track the breakout zone closely for confirmation.
Alkem is showing a classic Cup & Handle pattern on the daily chart. The stock has formed a rounded base between ₹4,400 and ₹5,400, consolidating after a healthy recovery from its earlier downtrend. Recently, it has created a mini-handle near resistance, signaling that buyers are absorbing supply before a potential breakout.
Price Action: Trading near ₹5,448, close to its recent swing highs.
Moving Averages: Price is above short-term and medium-term moving averages, showing bullish alignment.
Volume: Breakout attempts have been supported by improving volumes, confirming buyer strength.
Relative Strength (RS): RS vs Nifty has turned positive after months of underperformance, suggesting sector rotation in favor of Pharma.
Pattern Implications:
- A decisive close above ₹5,500–₹5,550 (handle breakout zone) can trigger a strong upward move.
- Measured move from the Cup formation projects potential targets towards ₹6,000–₹6,200 in the medium term.
- Fundamental Snapshot (supporting the trend):
- Strong presence in Indian pharma & exports, with leadership in anti-infectives.
- Debt-light balance sheet, stable margins.
- Pharma sector showing signs of revival, which could act as a tailwind.
Risk Factors:
Pharma sector is volatile; regulatory news (FDA observations, approvals) can impact sharply.
Stop Loss: A close below ₹5,250 (handle support & short-term MA zone) would negate the pattern.
Trading Strategy:
Entry: On breakout above ₹5,550 with volume.
Target: ₹6,000–₹6,200 (medium term).
Stop Loss: ₹5,250 (on daily closing basis).
Conclusion:
Alkem Laboratories is at the cusp of a bullish Cup & Handle breakout. With positive relative strength, strong volumes, and a supportive pharma sector trend, the stock looks poised for an upward move. Best to track the breakout zone closely for confirmation.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.