Lupin made a high of Rs.2129 in Sept-Oct 2015 and corrected sharply to Rs.1600 in Feb 2016. From there it rose to an important resistance level at Rs.1900. In the near term the stock has been trading in the range of Rs.1700-1900 from where it made a gap-down to Rs.1800 recently on adverse news. The price trend and momentum indicators have weakened and the share is poised to take support at Rs.1600 once again. The support at Rs.1600 is very critical for the future direction of the stock and a break-down from that level will accelerate selling in the stock with a bearish portent.

From a medium term perspective, the stock looks headed for Rs.1400 and short term rallies or pull-backs to ~ Rs.1800 will be an opportunity to sell/exit the stock.

G R CHARI