Sun Pharma, M&M, Grasim: How to trade these 3 stocks ahead of Q4 results?

Domestic equity indices settled higher on Thursday amid high volatility due to monthly expiry of derivatives contracts. The BSE Sensex added 98.84 points, or 0.16 per cent, to settle at 61,872.62. The NSE Nifty rose 35.75 points, or 0.20 per cent, to 18,321.15.

Select results-bound stocks Sun Pharmaceuticals, Mahindra & Mahindra (M&M) and Grasim Industries are likely to be in focus on Friday morning ahead of their quarterly results. Here is what Rohan Shah, Head of Technical Research at Stoxbox has to say on these stocks ahead of Friday's trading session:

Sun Pharmaceuticals | Avoid | Resistance: Rs 990 | Support: Rs 921

Sun Pharma has been trading in a potential falling wedge pattern on the daily chart. The interim correction has been arrested at the support of the pattern near Rs 920 level. The stock lacks EPS and price strength compared to Nifty and also professionals’ accumulation. We do not anticipate the stock to trend higher. From a short-term point of view, the immediate resistance comes at Rs 990 and support at Rs 921.

Mahindra & Mahindra | Buy | Target Price: Rs 1,370 | Stop Loss: Rs 1,230

Mahindra & Mahindra is forming a potential Cup and Handle scheme after a 20 per cent correction from all-time high level. The price action has seen improving relative strength compared to Nifty. The RSI is trading neutrally at 63 level and is showing no divergence against the price. The stock has immediate support at Rs 1,230 level. We anticipate the stock to attract further bullish momentum on a decisive close above Rs 1,295 level, which is acting as an immediate supply zone due to the pivotal point. The 61.8 per cent retracement level acting as an immediate supply zone. On decisive close above the said level, we anticipate the next hurdle at Rs 1,370.

Grasim Industries | Hold | Target Price: Rs 1,788 | Stop Loss: Rs 1,680

The pattern analysis of Grasim on the weekly chart shows that the price action faces stiff resistance off the falling trend line, which has been tested thrice already. The stock saw minor correction on dearth of volumes and is currently bolstered by shorter-term weekly moving averages. We anticipate the stock to garner strength and stage a bullish breakout, provided the low of Rs 1,680 remains protected. The stock is expected to attract bullish momentum on a decisive weekly close above Rs 1,788 level.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Business Today.)

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