Analysis: LUPIN

Today’s pick is LUPIN [stockquote]LUPIN[/stockquote]. The stock has been on an uptrend since the start of the year. It reached its 52 week’s high of Rs. 622 in the month of September. It is currently under long term pennant formation. In the last three months, the stock moved +2% vs. a flat Nifty.

LUPIN Technical Analysis Chart

Oscillator RSI and CMO are currently in no-man’s land. The stock is currently trading in the upper range of the Bollinger bands. Short-term technical just saw a 9X18 bullish cross-over.

The MACD line has bullishly penetrated the signal line after very long. However, the Long-term and short-term GMMA lines are moving very close to each other without giving any directional bias to the stock.

LUPIN Correlation chart

LUPIN’s average correlation with the Nifty is 0.29, which is positive. The scrip will be replicating movement of Nifty. [stockquote]NIFTYBEES[/stockquote]

LUPIN Volatility chart

LUPIN has a historical volatility in the narrow range of 0.2 to 0.7. The scrip’s volatility is currently in the lower end of the range.

Given the technicals, we suggest a short-term buy. A long-term call could be taken depending on the directional break-out of the pennant. Also, it is advisable to have a relaxed trailing stop-losses level to book profits in case of a trend-reversal.

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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