Ajanta Pharma Stock Analysis Based on Monthly Charts

ajanta pharma chart based analysis

Ajanta Pharma is a mid-cap pharmaceutical company. Since the year 1973, they are committed to ‘Serve Health Care Needs Worldwide’ and engaged in marketing, manufacturing and development of quality finished dosages. Their business spread in India and more than 30 emerging countries. Recently Ajanta Pharma stock analysis becomes significant for the sudden stocks values fluctuations. Hence, it is advisable to analyse the stock thoroughly prior to making any decision.

This content is going to be an analytical review of Ajanta Pharma Stock based on Monthly Charts. Before step into the technical analysis, let’s have a look at some basic fundamental information of the stock.

ajanta pharma stock analysis

The above chart shows Ajanta’s current stock price movements. It is quite visible that recently the stock follows the bearish trend. In order to avoid loss, investors must play safe.

Ajanta Pharma Stock Analysis Based on Monthly Charts

Now, it’s time to look for the analytical review. A chart of Ajanta stock’s price movements is as follows:

Ajanta Pharma Stock Analysis chart

The above chart is the company’s monthly chart which reflects a clear head and shoulder pattern. A properly visible head and shoulder pattern don’t occur very often but when it does, it means a major trend reversal is going to happen soon. The pattern arises with an uptrend then reaches a pick and starts to decline, known as left shoulder. The middle and highest pick point refers to head and right shoulder again set up with bearish form.

The pattern clearly displays neckline breakdown, the white line in the chart connect the two lows and create a neckline. When the price breaks the line, breakdown happens. The head and shoulder pattern completes after the breakdown.

It is clearly visible that the previous Rs. 1000 trend is coming to an end and it is expected to begin a new trend. As the pattern carries bearish setup, the price will certainly go down.

As the neckline breakdown occurs around Rs 1110, so it is expected that the downwards trends fall to at least 50% of the current price, near about Rs.500.

Now, let’s come to the main point, what will be the best decision investors can make. In the analytical review, the main focal point should be how to avoid loss in this situation. According to our analysis, investors must sell stocks in future terms and carry forward the stocks till the target Rs 500 on the downside. Traders must keep a stop loss of Rs. 200-250 on the upside till the target gets achieved. As it is a monthly chart, it is clearly predictable that the target is unachievable overnight. Investors must keep patience and wait for the desired target. SELL in future and carry forward your position for the target of Rs. 500.

Ajanta Pharma Stock Analysis Conclusion:

 Price fluctuations, market trend change, these are some common and basic characteristics of the stock market, investors must be prepared for every situation. Keeping patience is the only requirement here. Just carry forward investment till the desired target will be achieved.

Ajanta Pharma Stock Analysis Based on Monthly Charts

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