Piramal Pharma’s stock has been in an uptrend since April last year after it found support at ₹62. But after appreciating to ₹160 in May this year, the bulls lost momentum. While there was no bearish trend reversal, the stock was largely trading sideways, between ₹145 and ₹160.
Early this week, Piramal Pharma began rallying on the back of the support at ₹145. On Wednesday, it broke out of ₹160. Consequently, we expect the stock to touch ₹185 in the near term. So, buy the stock of Piramal Pharma now at ₹166 and accumulate if the price moderates to ₹156. Place stop-loss at ₹145. When the stock rises to ₹175, move the stop-loss up to ₹168. Tighten the stop-loss further to ₹175 when the price hits ₹180. Exit at ₹185.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)