Glenmark Pharmaceuticals Limited is one of the most well-established names in the Pharmaceutical industry, incorporated in the year 1977. The company is engaged in the business of manufacturing and selling of finished branded formulations, generic drugs and active pharmaceutical ingredients (APIs). Glenmark spread its network globally in 80 plus countries including India, the United States, EU, Japan and South America. Today we are going to analyze the Glenmark Pharma Share Price Graph.
Before step into the main analytical discussion, it is important to check out the company details and financial data. Let’s start with the share price of the company based on the current market scenario. As on 28.06.18 Glenmark share price stands at 577.50 in NSE. Now, move on to the other fundamental details of the company. It is a small-cap company with a market cap of 16,340.36. Its P/E ratio stands at 20.33 and EPS is 28.49. Price/Book value is 3.09 and Div Yield is 0.35%. All the data is based on the consolidated information.
At first, you have to understand the term “bullish divergence”. In Glenmark Pharma’s recent price graph you have to go through the term. When technical indicator disagrees with the actual price action divergence occur. You can notice two types of divergence in the market, bullish and bearish. The disagreement is common in these two types of divergence but there is some difference too. In bullish divergence, the indicator makes a higher low while the price action establishes a lower low. In case of bearish divergence, the indicator makes a lower high while the price action completes higher high.
Glenmark Pharma Share Price Graph
Glenmark Pharma’s price graph forms a bullish divergence pattern. In order to give a clear demonstration, an image is attached below:
The above chart of Glenmark Pharma Share Price Graph is taken from Zerodha Kite. This is a weekly chart with RSI (relative strength index). If you are a regular trader, you must be acquainted with RSI indicator which oscillates between zero and a hundred. Generally, it indicates the strength of the market. As you can see that there is a clear disagreement between actual price action and RSI. The price action establishes a lower low while the RSI indicator establishes a higher low. The volume is also quite higher in comparison to the previous action.
Now, come to the price action breakout point. As you can see the price breaks the level at Rs. 598. After breakout price goes up and retraces back down to test the breakout price level. Now, as I have mentioned that the current share price of Glenmark is near about Rs. 577.50. If the price can stay at the current level or best above the breakout zone for a few days, after that there is a chance to achieve the first target close to Rs. 640. After the first target, Rs. 700 will the second one. It is advisable to set the stop loss level close to Rs. 540 level, otherwise, you can set the SL according to your analytical view.
Therefore, If you decide to invest in this company’s stock, this is the high time to BUY it and HOLD the stock until your target is achieved.