SUNPHARMA - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Swing Trade Rating: 3.9

📊 Analysis Summary

SUNPHARMA is a technically stable and fundamentally strong large-cap pharma stock. It’s trading near its 50 DMA and 200 DMA, with bullish indicators like MACD and RSI suggesting potential upside. While valuation is slightly stretched and recent earnings dipped, the stock remains a moderately attractive swing trade candidate.

✅ Strengths

ROCE (20.2%) and ROE (16.9%): Strong operational and equity efficiency.

MACD Positive (5.11): Bullish momentum signal.

RSI at 58.6: Healthy momentum, not yet overbought.

Low Debt-to-Equity (0.03): Financially sound.

EPS of ₹45.6: Strong earnings base.

DII Buying (+0.80%): Domestic institutions showing confidence.

Trading Near DMA Support: Price is close to 50 DMA (₹1,692) and 200 DMA (₹1,702) — potential bounce zone.

⚠️ Weaknesses

P/E (35.8) > Industry PE (34.0): Slightly overvalued.

PEG Ratio (1.78): Expensive relative to growth.

Quarterly Profit Decline (-13.1%): Recent earnings contraction.

FII Selling (-0.70%): Foreign investors reducing exposure.

Volume Slightly Below Average: Current volume (14.5 lakh) vs 1-week average (14.9 lakh).

52w Index at 38.7%: Weak relative strength compared to yearly high.

📈 Optimal Entry Price

Buy Zone: ₹1,680–₹1,700 Near DMA support — enter on bounce confirmation with volume and RSI > 60.

📉 Exit Strategy (If Already Holding)

Target Exit: ₹1,780–₹1,820 Short-term resistance zone before 52-week high.

Stop Loss: ₹1,660 Below recent support and DMA levels — exit if trend weakens.

🧠 Final Thoughts

SUNPHARMA is a solid swing trade candidate with strong fundamentals and improving technicals. Traders should watch for a breakout above ₹1,720 with volume for confirmation. A pullback to DMA levels offers a good entry with limited downside risk.

Would you like to compare it with other pharma stocks like Cipla or Dr. Reddy’s for stronger momentum setups?

Edit in a page