EquityPandit’s Outlook for Sun Pharma for week (July 27, 2015 – July 31, 2015):

SUN PHARMA:

SUN PHARMA closed the week on negative note losing around 12%.

As we have mentioned last week that the stock has formed a Shooting Star pattern on daily charts around the strong resistance zone of 960 levels in an uptrend indicating the trend reversal. Also the stock has virtually filled the gap which was created when the stock opened gap down on 01/06/2015. The stock could not move above the resistance zone of 960 levels and sold off during the week on the back of news flow from the company regarding earnings downgrade.

On the back of bad news from the company the stock sold off and has taken support around the zone of 800 from where the stock has bounced back multiple times.

The stock has to sustain above the levels of 860 to resume the uptrend.

Support for the stock is seen in the zone of 800 below which the stock can drift to the levels of 750.

Broad range for the stock in the coming week can be 800 – 810 on lower side to 860 – 880 on upper side.