Buy Sun Pharma June Futures at Rs 496: Nandish Shah of HDFC Securities

Buy Sun Pharma June Futures at Rs 496

Target: Rs 515

Stop Loss: Rs 487

Lot Size: 1,250

Rationale:

-- We have seen Long build-up in the Sun Pharma futures, where we have seen 5 per cent rise in the Open Interest (Prov) with price rising by 4 per cent.

-- The stock price has broken out above the downward slopping trendline adjoining the highs of April 27 and June 1, 2020

-- The stock's primary trend is positive and its price is trading above 200-day SMA

-- Daily RSI oscillator is placed above the 60 level, indicating sustainability of the existing trend

-- Plus DI is trading above Minus DI, indicating bulls have an upper hand

-- Pharma, as a sector, looks good on the short- and medium-term chart

Disclaimer: Nandish Shah is a Technical & Derivative Analyst at HDFC Securities. Views are personal.