Divis Laboratories Ltd

NSE :DIVISLAB   BSE :532488  Sector : Pharmaceuticals

About Company: Divis Laboratories Ltd is engaged in manufacturing of Advanced Pharmaceutical Ingredients (APIs), Intermediates and Nutraceutical ingredients with predominance in exports. It has a market presence in 95 countries and ~14,000 employees and is one of the leading pharmaceutical companies in the world.

Daily Chart of DIVISLAB:

Technical Outlook of Divis Lab:

On Wednesday 16th Feb 2022 stock gained 3.25% and closed at 4467.50. Price apricated by 138.50 per share. On 11th Feb 2022 company announced quarterly results after which stock has seen buying interest from trades and investors.

On the daily chart Stock broke out of Falling Trendline pattern today and managed to close above trend line breakout level. Stock currently is trading below resistance level of 200 Days Exponential Moving averages and can head towards 200 EMA around 4750. 14-period Relative Strength Index (RSI) has also shown trend line breakout as marked on the chart above.

Looking at the chart pattern, Trendline breakout and follow up buying after quarterly results we maintain buying on Divis Lab, hence we recommend buying stock at current level @ 4450- 4460, Expected targets on the upside are 4750 and stoploss should be maintained below 4290.