{"id":10470,"date":"2022-10-04T14:55:18","date_gmt":"2022-10-04T09:25:18","guid":{"rendered":"https:\/\/www.tickertape.in\/blog\/?p=10470"},"modified":"2022-10-12T16:34:45","modified_gmt":"2022-10-12T11:04:45","slug":"will-this-counter-pick-up-the-first-from-the-pharmaceutical-sector","status":"publish","type":"post","link":"https:\/\/www.tickertape.in\/blog\/will-this-counter-pick-up-the-first-from-the-pharmaceutical-sector\/","title":{"rendered":"Lupin: Will This Counter Pick Up the First From the Pharmaceutical Sector?"},"content":{"rendered":"\n<p>A sizable correction is seen in the market. Almost all the counters were corrected significantly. It seems the smart money will prefer the stable counters, and pharma can\u2019t be missed out. The entire <a href=\"https:\/\/www.tickertape.in\/blog\/indian-pharma-sector-before-during-and-after-covid-19\/\">pharma sector<\/a> has seen a sizable time correction for a long time and is poised for a decent rally. Herein I share my technical observations on one of the giant pharmaceutical companies, <a href=\"https:\/\/ttape.in\/cyADKyywQtb\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/ttape.in\/cyADKyywQtb\" rel=\"noreferrer noopener nofollow\">Lupin<\/a>.&nbsp;<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.tickertape.in\/blog\/will-this-counter-pick-up-the-first-from-the-pharmaceutical-sector\/#Monthly-Cycle\" title=\"Monthly: Cycle\">Monthly: Cycle<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.tickertape.in\/blog\/will-this-counter-pick-up-the-first-from-the-pharmaceutical-sector\/#Monthly-RSI\" title=\"Monthly: RSI\">Monthly: RSI<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.tickertape.in\/blog\/will-this-counter-pick-up-the-first-from-the-pharmaceutical-sector\/#Monthly-Fibonacci\" title=\"Monthly: Fibonacci\">Monthly: Fibonacci<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.tickertape.in\/blog\/will-this-counter-pick-up-the-first-from-the-pharmaceutical-sector\/#Weekly-RSI\" title=\"Weekly: RSI\">Weekly: RSI<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.tickertape.in\/blog\/will-this-counter-pick-up-the-first-from-the-pharmaceutical-sector\/#Weekly-MACD\" title=\"Weekly: MACD\">Weekly: MACD<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.tickertape.in\/blog\/will-this-counter-pick-up-the-first-from-the-pharmaceutical-sector\/#Daily-Ichimoku\" title=\"Daily: Ichimoku\">Daily: Ichimoku<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.tickertape.in\/blog\/will-this-counter-pick-up-the-first-from-the-pharmaceutical-sector\/#Monthly-Ratio-chart-Lupin-Vs-Sun-pharma\" title=\"Monthly: Ratio chart: Lupin Vs Sun pharma\">Monthly: Ratio chart: Lupin Vs Sun pharma<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.tickertape.in\/blog\/will-this-counter-pick-up-the-first-from-the-pharmaceutical-sector\/#Monthly-Ratio-chart-Lupin-vs-Glenmark\" title=\"Monthly: Ratio chart: Lupin v\/s Glenmark\">Monthly: Ratio chart: Lupin v\/s Glenmark<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.tickertape.in\/blog\/will-this-counter-pick-up-the-first-from-the-pharmaceutical-sector\/#Monthly-Ratio-chart-Lupin-vs-Nifty-Pharma\" title=\"Monthly: Ratio chart: Lupin v\/s Nifty Pharma\">Monthly: Ratio chart: Lupin v\/s Nifty Pharma<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.tickertape.in\/blog\/will-this-counter-pick-up-the-first-from-the-pharmaceutical-sector\/#Putting-it-all-together\" title=\"Putting it all together\">Putting it all together<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Monthly-Cycle\"><\/span><strong>Monthly: Cycle<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh3.googleusercontent.com\/bfRru6B-T9ZZf_2quZA0PXvylKoBze_I8Px2muunDUsWOMqFZRT10c8KBqoZplQlmFcpJl8oprlnMZHjHcm1ycoJAMwiZ6VTcOdtKvIYi5xwPSfALO3whLUuEBmXd3SwF3S596SHggg4rS1dkzMatVMbpQ-CKUrQykuwbtxlnP4W3RrYZQzox2skd-GRxbt2M4ogKg\" alt=\"\"\/><\/figure>\n\n\n\n<p>In the last two decades, the counter has witnessed a 25 months cycle. This cycle has been consistent and almost worked spot on. Stock is either in sideways or rallied (positive\/negative) during the cycle phase. Recently, we saw a correction in the stock. Considering other observations, sideways behaviour is likely (i.e. recovery till the zone from where correction started).&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Monthly-RSI\"><\/span><strong>Monthly: RSI<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh3.googleusercontent.com\/cnLoLkPL6ojI1FRIG-UvOlBxUM0KyD5nhrerF605yvSvMtnDwWQHBnODZvp4cmKG99yQY6BZj3oY8SauOyzbWCxMkyRpd_QWVApLtHYYi3s6qp6uugIM4Q_4Bc9SR3lyMpfkVOxQdHQijTZiiHmymu_LovFhGVNptie3QCBQRZyOM7sit6cCGBaMHgBySTKgvo3HWw\" alt=\"\"\/><\/figure>\n\n\n\n<p>Stock is decently respecting the 12 \u2013 13 yrs old yellow trendline. Recently, the counter again consolidated on the support trendline and held that zone well. The <a href=\"https:\/\/www.tickertape.in\/blog\/momentum-indicator\/\">momentum indicator<\/a>,<a href=\"https:\/\/www.tickertape.in\/blog\/relative-strength-index\/\" data-type=\"URL\" data-id=\"https:\/\/www.tickertape.in\/blog\/relative-strength-index\/\"> RSI,<\/a> is making lower bottoms, whereas the price is making higher bottoms, confirming hidden bullish divergence. One can consider this counter for accumulation (observation being on a higher timeframe).&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Monthly-Fibonacci\"><\/span><strong>Monthly: Fibonacci<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh4.googleusercontent.com\/oHZqJIG5eRadS0osWklI2u_AVVEcewLLCspzDPIlofYZ-osF4-vRjjkwF0WvsFQXX6PMXy9gcNSYGUlu2HKde7XhdKTYG8_aj_5j7xEMmA4pyBMuJwabTpWrrmPgKinVhOdg-vz0LnDHLIOZbFURcws82m0kWeV6Hbtax1G-ZBlp8vm874takI--KAtzXtylw_5vKA\" alt=\"\"\/><\/figure>\n\n\n\n<p>Fibonacci works well to identify support, resistance and potential targets (in case of extension). From the previous high of 2015, the price came down to extreme lows of the 500 zone. That swing is considered to find resistance. Price bounced from the lows and halted exactly near 50% of the retracement of the swing (1300 zone). Again, it declined to the vicinity of the previous low. That last swing is considered to find support for the present decline. The blue line of 88.6% offered the support and price made (kind of) double bottom (in fact higher bottom). A superb bargain buy opportunity seems to be on the cards.\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Weekly-RSI\"><\/span><strong>Weekly: RSI<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh3.googleusercontent.com\/tM23KGl4ODVgucoylmKENLHJft1NplVisLIWPsVJ2nubEdL2U5akkfW8J0siP1HBmNef-_Umg6CFmF4CxxfV7hNQZISwrM-1PVxeSiKEKaCWVWhlWyjOy4Uc6lREIA9MZQYjHx5sAqmG_6FtSzFiHU_I59I78J8PVS3uHjfKm_R-1iVT9UENeH6tGnw8PjbJZdoyDw\" alt=\"\"\/><\/figure>\n\n\n\n<p>The way we witnessed behaviour on the monthly chart, similar behaviour is seen on the weekly chart, where the price is making the higher bottom, and RSI is making a lower bottom, making it a hidden bullish divergence. Also, the weekly RSI is about to cross the 50 zones, so momentum may emerge anytime soon.\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Weekly-MACD\"><\/span><strong>Weekly: MACD<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh5.googleusercontent.com\/sjgY1TTuRBspKAOq5bXoGkOxN0U6Ad2wGeM_a5ozh4rpayw2c6oaSoGzzah6_45mseOHvaWymDrcUN2rYp3Goc0g3PQiuFo9R_-awJJZT8jvUKXo25CYcsEeOgsYSZG5wUD4ZC5s3mxhX-_4TmwiCbYCdYVpC3S-HHWdB0owrjKiXOu3Bf2SkhXTPT5K3h-M170llA\" alt=\"\"\/><\/figure>\n\n\n\n<p><a href=\"https:\/\/www.tickertape.in\/blog\/moving-average-convergence-divergence\/\" data-type=\"URL\" data-id=\"https:\/\/www.tickertape.in\/blog\/moving-average-convergence-divergence\/\">MACD<\/a> is a lagging indicator and confirms the emergence of a trend. Multiple ways to study <a href=\"https:\/\/www.tickertape.in\/blog\/moving-average-convergence-divergence\/\">MACD<\/a>, one of them being a crossover. Here we can see that MACD came down to extreme lows (like during 2017-18) and is now recovering from those levels. MACD Crossover is noticed on the chart. This can be considered the first sign of bottoming out. One can focus on the chart formations to consider further action.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Daily-Ichimoku\"><\/span><strong>Daily: Ichimoku<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh6.googleusercontent.com\/kyNKNxbPa8iGH_apHrtzmb5MGOBqMDml61nKh601SkxMNFiiQGzgpZITTabXWU0-ZodrSpdCVZUD_RYEvyR3gnvDEXoGHif5UZqdC09K9HtoPqr5cs5rdAiATn0Ic3BlP9I-z8h_d7xRMQ-6cnfD6JkCrdaDVt5HMKn3hO-n0fHyIT1SXlxqT_Pql4T3TSL4Z9yf6w\" alt=\"\"\/><\/figure>\n\n\n\n<p><a href=\"https:\/\/www.tickertape.in\/blog\/ichimoku-cloud\/\" data-type=\"URL\" data-id=\"https:\/\/www.tickertape.in\/blog\/ichimoku-cloud\/\">Ichimoku <\/a>is certainly a lagging indicator, but the signals generated by the same are astonishing. On the daily chart, the price entered massive sideways consolidation. Due to sideways consolidation, the Kumo cloud turned narrow, and the price could decisively cross the Kumo cloud on the higher side with decent volumes. The crossover coincided with Tenkan \u2013 Kijun crossover, confirming short-term bullishness. One can start accumulating the counter as it sustains above the cloud.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Monthly-Ratio-chart-Lupin-Vs-Sun-pharma\"><\/span><strong>Monthly: Ratio chart: Lupin Vs Sun pharma<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh4.googleusercontent.com\/gMAhCFJQO92QofUexleVjJ3CJEkH1pt_kmRyCQM7qAyUanmVtHV24YSzp4MsafqL2URkqE_mRuVzMFFZi_WFrTWkzxdlmBpfEyJ7pP4uC7tcPWSwNpkk2fOk0nHhwTGS3Njnmehaun7uJw0uLpeTzQ6ngeOCWnF6VuqmexqWh072psRDpmmN4NNllniYJoZ5FcwuXg\" alt=\"\"\/><\/figure>\n\n\n\n<p>This is the ratio chart of <a href=\"https:\/\/www.tickertape.in\/blog\/lupin-technical-analysis\/\">Lupin<\/a> Vs <a href=\"https:\/\/ttape.in\/gxVIsvsyQtb\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Sun Pharma<\/a>. Very clearly, Sun Pharma seems to be outperforming Lupin for many years in the recent past. But the ratio chart has come to the zone from where it took a bounce in the past. It is also consolidating near that zone for 4-5 months. Looking at the past, there seems to be a bright opportunity of going long on Lupin over sun pharma.\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Monthly-Ratio-chart-Lupin-vs-Glenmark\"><\/span><strong>Monthly: Ratio chart: Lupin v\/s Glenmark<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh3.googleusercontent.com\/vTvepA_PxtNpZDYY7cKvOBSNmElGodHNJKfvGE53kVIRdNmMZ1GKJ68UY9gQ8CD9859dsBA0dvzx8R7fQsCaQBje-zvzpsUGtNQT9qyVSGfz5pRpuSa3sOhX1Z7vuvgrz7L_uLacleblZUEKuOpxTFPEvsfe8ybIXtaHvskoage1rJcxpkZEz0dGHWEwjg0JSxbxzA\" alt=\"\"\/><\/figure>\n\n\n\n<p>The ratio chart here shows a clear uptrend, confirming Lupin&#8217;s bullishness over <a href=\"https:\/\/ttape.in\/Y48ofPeAQtb\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Glenmark<\/a>. Lupin underperformed in the short term, but the chart reached the support trendline, and the trendline is offering decent support. It seems better days for Lupin v\/s Glenmark will be back soon.\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Monthly-Ratio-chart-Lupin-vs-Nifty-Pharma\"><\/span><strong>Monthly: Ratio chart: Lupin v\/s Nifty Pharma<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh4.googleusercontent.com\/SaHmEzPBcInuHbHY0Bj2Cb3eGaHAZMUpjasuqBvJz38pLcJD3WtfnwPkGwuObk_YiWuGxshh00GulNLDMCMLvEhHWPTj-uuQCLAymgyMddIz-1GDm1KXl4Km9_aztg9NkwCcZbf-k3Ns655ciWnAht6BQlQ6KGZsSGmjRuv-Z5eYhfN6Ok_9htEnsp7C2JOoxMH-CQ\" alt=\"\"\/><\/figure>\n\n\n\n<p>Pretty long underperformance of Lupin v\/s entire Pharma sector is seen. The fall on the chart was brutal. But one can see hidden bullish RSI divergence for an entire decade. Price action is also taking support at 78.6% of the retracement zone. It\u2019s certainly worth looking at Lupin over the entire sector.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Putting-it-all-together\"><\/span><strong>Putting it all together<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Looking at the 25 months cycle, bullish hidden RSI divergence, Fibonacci retracement of 88.6% and higher bottom, hidden bullish divergence on weekly RSI, MACD crossover from extreme lows &amp; Ichimoku cloud crossover with Tenkan Kijun crossover on the daily chart is making the counter attractive from short term to positional term. The ratio charts of Lupin with Sun Pharma, Glenmark and <a href=\"https:\/\/ttape.in\/ol1yrC7AQtb\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/ttape.in\/ol1yrC7AQtb\" rel=\"noreferrer noopener nofollow\">Nifty Pharma<\/a> give more conviction of the likely outperformance of the counter over its peers. As most of the charts are of a higher timeframe, one needs to have a positional approach for the discussed stock.\u00a0<\/p>\n\n\n\n<p><em>Statutory Disclosure:<\/em> <em>Kindly note that this update is only for educational purposes. It is safe to assume that my personal position, my fund\u2019s position, my client\u2019s position and my relative\u2019s position may be open on the counter. Prefer to take the advice of your financial advisor before initiating any position.&nbsp;&nbsp;<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The entire pharma sector has seen a sizeable time correction for a long time and is poised for a decent rally. Here is our expert, Kunal Rambhia\u2019s technical observation on Lupin.<\/p>\n","protected":false},"author":73,"featured_media":10386,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_lmt_disableupdate":"no","_lmt_disable":"no","footnotes":""},"categories":[1723],"tags":[],"acf":[],"modified_by":"Anjali Chourasiya","jetpack_featured_media_url":"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/09\/26-Sept-22-Technical-Analysis-of-Deepak-Nitrite-by-the-Expert-Kunal-Rambhia-02.png?wsr","_links":{"self":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/10470"}],"collection":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/users\/73"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/comments?post=10470"}],"version-history":[{"count":6,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/10470\/revisions"}],"predecessor-version":[{"id":10586,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/10470\/revisions\/10586"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media\/10386"}],"wp:attachment":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media?parent=10470"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/categories?post=10470"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/tags?post=10470"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}