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Lupin crashed

Discussion in 'Technical Analysis' started by jignesh_acharya, Apr 18, 2015.

  1. jignesh_acharya

    jignesh_acharya Active Member

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    Lupin crashed heavily, although it confirms fresh shorts in this stock has been built up, but still i want to know your view. I am holding @ 1805.
    It has also broken its trend line
     

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    jignesh_acharya, Apr 18, 2015
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  2. saptarshi_sachin

    saptarshi_sachin Responder

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    Technically Lupin has broken trend lines as seen.

    But the imp part of it was: there was a huge downgrade in Lupin by Nomura. Nomura downgraded Lupin to some 1650-ish levels citing slower US sales growth, and the moment the downgrade news started pouring in, there was steep fall. Such things are taken seriously by big fish.

    And there was bad news in Lupin too. Suprax, one of its best-selling drugs which almost had no competition till now.. But it has competition now from another similar drug (Cefixime) by Aurobindo Pharma which just got the final approval by USFDA. So Suprax sales likely to get hit in coming quarters, hence I believe there was the downgrade.

    It would be good to avoid Lupin till the time being its falling. Once it stops, consolidates and makes some sort of a base, and moves up, one can buy. Hold on to Lupin whatever you have already bought and wait for the fall to be over first.
     
    Last edited: Apr 19, 2015
    saptarshi_sachin, Apr 18, 2015
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