Chart Check from IIFL Wealth for Monday, January 30th: Sun Pharma and APIL

Analyst: Ashish Chaturmohta, Vice President – Derivatives & Technical Analyst, IIFL Private Wealth

'BUY' Sun Pharmaceutical

Sun Pharma on its daily charts has formed a rounding bottom formation prima facie which is a bullish pattern formation and is trading close to its all time high levels indicating strength in the stock.

Sustaining above 540 levels on closing basis, stock can see further buying interest and may head towards 575 – 580 levels.

However, on downside the stock finds support around 515 levels, below which some liquidation of longs can be seen. The stock is trading above its short term and long term moving averages, indicating strength in the stock.

'SELL' Alstom Projects India Limited

APIL after taking resistance of its falling trendline, has witnessed intense selling pressure with volume participation indicating weakness in the stock.

Now, sustaining at current levels, the stock can move towards 325 levels. However, on upside now 360 would act as an immediate cap for the stock, if sustained above this level on closing basis some short covering may be seen.

The stock is trading below its short term and long term moving averages, suggesting negative bias.