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The stock of SMS Pharmaceuticals gained 7 per cent with above average volume on Thursday, strengthening its bullish momentum. Following a medium-term downtrend from the key resistance level of ₹110, the stock found a base at the long-term support band between ₹63 and ₹65 in early June. This support once again provided cushion in the previous week and halted the stock’s fall.
Over the last one week, the stock has been in a near-term up-move. The Thursday’s rally has decisively breached both the 21- and 50-day moving averages. The daily as well as weekly relative strength indices are charting upwards in the neutral region. The daily price rate of change indicator is on the brink of entering the positive territory from the negative territory, implying buying interest.
The near-term outlook is bullish for the stock of SMS Pharmaceuticals. It can extend the up-move and reach the price targets of ₹77 and ₹78.5 in the coming trading sessions. Traders with a near-term horizon can buy the stock with a stop-loss at ₹72.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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