Analysis: LUPIN

Today’s pick is LUPIN. [stockquote]LUPIN[/stockquote]. The stock has been in an uptrend through-out the past year. It recorded its 52 week high of Rs. 631 in the month of Sep following which it started moving in a range of Rs. 550 – Rs. 600.The stock closed above this range yesterday. In the last three months, the stock moved -3% against 11% rise of Nifty’s.


Oscillators RSI and CMO are at currently at 66 and 56 – in the over-bought territory. Although looking at the historical reversal levels, the stock still has to track 10 points.

The MACD line in on up-move and is supported by the rising histograms, a sign of bullishness for the scrip.

The long-term GMMA lines are starting to spread out (a bullish sign) accompanied with the expanding short-term lines, suggesting a short-term bullish move for the stock. This is further confirmed by the 9×18 bullish cross-over last week.


LUPIN’s average correlation of 0.30 with the Nifty is positive. Although, the stock will not be replicating the movements of Nifty given the small co-efficient. [stockquote]NIFTYBEES[/stockquote]


LUPIN has a historical volatility in the range of 0.3 to 0.6. The scrip’s volatility is at its lowest.

Looking at these technicals the stock is short-term BUY. We could give a long-term call after a decisive expansion of the long-term GMMA lines.

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