Sun Pharmaceutical Industries Limited (SUNPHARMA) Stock - Complete Technical Analysis - Sep 16, 2024

"Sun Pharma Stock Analysis: Is the Bullish Trend Sustainable Technical Breakdown & Key Levels"

Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Investing in stocks involves risks, and it's essential to conduct thorough research or consult with a financial advisor before making investment decisions.

Technical Analysis for Sun Pharmaceutical Industries Limited (SUNPHARMA)

Sun Pharmaceutical Industries Limited is currently trading at 1862.95, just 0.46% below its 52-week high of 1871.5. This price point reflects a substantial 74.38% increase from the 52-week low of 1068.35, indicating a strong upward trend over the past year.

Support and Resistance Levels:

Immediate Resistance: The stock faces immediate resistance near the recent high of 1873.35. A breakthrough above this level could drive the price towards the next significant resistance at around 1923.88.

Immediate Support: Support is expected near 1850.9, with additional support around 1813.48. A decline below these levels could push the stock towards further support around 1725.92.

Technical Indicators:

MACD: The MACD is showing positive momentum, suggesting that the stock is in a bullish phase.

RSI: The Relative Strength Index is in the overbought zone, indicating that the stock might be due for a correction soon.

ADX: The ADX is high, indicating a strong trend, with the current trend being upward.

Stochastic Oscillator: The Stochastic %K is in the overbought region, signaling potential overextension.

CCI: The Commodity Channel Index is high, reflecting strong upward momentum.

Awesome Oscillator: The Awesome Oscillator is positive, reinforcing the bullish trend.

Williams %R: The Williams %R is in the overbought zone, suggesting a possible pullback.

Chart Patterns:

Doji: The recent Doji pattern indicates indecision in the market, with the stock closing near its opening price, reflecting uncertainty among traders.

Bullish Harami: The Bullish Harami pattern suggests a potential reversal or continuation of the bullish trend.

Spinning Top: This pattern also signals indecision, which could mean the market is poised for a possible change in direction.

Moving Averages:

The stock is trading above all significant moving averages, including the 50-day, 100-day, and 200-day MAs, indicating a strong upward trend. The current price is above the Exponential Moving Averages (EMA) and Simple Moving Averages (SMA) across various periods, reinforcing the bullish outlook.

ATR (Average True Range):

The ATR is elevated, suggesting increased volatility. This could be a sign of significant price movements in either direction.

Overall, Sun Pharma is showing a strong bullish trend but is currently in the overbought zone according to several indicators. Traders should be cautious of potential pullbacks and watch for key support and resistance levels for future price action.