Chart Check: This pharma stock hits fresh 52-week high in December; likely to scale Rs 24,000

Historical data suggests that the stock has been taking support above the rising moving average placed at the 30 and 50-Period Moving Average plotted on the monthly charts.

A breakout from the falling trendline could push the stock higher towards Rs 24000, suggest experts. Short-term traders who missed the rally can look to buy the stock now or on dips.

The stock rose more than 5% in a week, over 8% in a month, and has risen over 20% in the last 3 months.

In terms of price action, it is trading well above the short and long-term moving averages of 5, 10, 30, 50, 100, and 200-DMA, a positive sign for the bulls.

The stock is trading around overbought levels; hence, a mild pullback could be on the cards. Traders can accumulate the stock above Rs 21000 levels, suggest experts.

ET CONTRIBUTORS

The Relative Strength Index (RSI) is 76.4. RSI above 70 is considered overbought. This implies that the stock may show a pullback. MACD is above its center and signal Line, a bullish indicator.

“Nifty might be trading near 18000 but MNC pharma stocks are heading high. Among the MNC pharma stocks, Abbot India stock is moving with firmness,” Kapil Shah, Technical Analyst, Emkay Global Financial Services and Trainer- FinLearn Academy, said.

“For more than a decade, the stock has been taking support at a rising moving average followed by a breach of the intermediate falling trendline. In recent context, the stock is rising with the same characteristic,” he said.

“Traders can accumulate the stock in the range of Rs 21,777 to Rs 21,000 for a target of Rs 24,600 in the next 2 months,” recommends Shah. A stop loss can be placed at Rs 20,200.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of the Economic Times)