Divis Lab has formed a inverse Head & Shoulder Pattern.
It saw a strong selloff on 21st March after the surprise USFDA inspection.
The company has good fundamentals & some Mutual Fund houses are strong believers of its capabilities.
A manufacturer of complex drugs, handled by good management makes it a strong reversal candidate.
We can go long with a target of 711 initially & look for 762 (as it may try to fill the GAP).
The stock has seen short covering today which suggests more upside.
Keep a stop at 648. Keep checking for volume pickup as the trade advances.
It saw a strong selloff on 21st March after the surprise USFDA inspection.
The company has good fundamentals & some Mutual Fund houses are strong believers of its capabilities.
A manufacturer of complex drugs, handled by good management makes it a strong reversal candidate.
We can go long with a target of 711 initially & look for 762 (as it may try to fill the GAP).
The stock has seen short covering today which suggests more upside.
Keep a stop at 648. Keep checking for volume pickup as the trade advances.