The stock of Sun pharma is in a distinct bear phase with the prices moving below multiple fibonacci retracement levels over the past several months. Prices have rebounded from the 78% level of Rs 700 which can be termed as the last support level before Bears hammer the stock to much lower levels. Fundamentally, news about the company finding it difficult to digest the Ranbaxy acquisition is not helping matters. Moving averages are in the negative crossover indicating prolonged selling pressure. Stock can make a trading rally from oversold levels but it is best it is treated as a dead cat bounce where higher levels should attract even more selling pressure.
|SUN PHARMA- NEAR LAST LINE OF DEFENCE?|