Highlights:

Supriya Lifescience Ltd’s prices recently broke a crucial resistance level and are sustaining above the breakout level for the past couple of sessions.

• Prices also broke above a Short-term downward trendline by an upside with the support of volumes.
• The RSI (14-period) is above the midpoint and moving northward, indicating positive momentum in the stock prices.

Company Overview: Supriya Lifescience Ltd (NSE: SUPRIYA) is an India-based biotechnology company engaged in manufacturing active pharmaceutical ingredients (APIs). It develops APIs for various therapeutic segments, such as Antihistamines, Anti-Allergic, Vitamins, Anesthetics, Ant-Malarial and Anti-Asthmatics.

Technical Observation:

SUPRIYA’s prices recently broke a crucial resistance level of INR 268.30 by an upside and are sustaining above the breakout level for the past couple of sessions, indicating a positive momentum buildup in the stock prices. It also broke a falling trend line by an upside, supporting the positive bias. The upside movement in the stock is accompanied by increasing volume, indicating that the trend reversal may continue for the short term.

Technical Indicators Summary:

The RSI (14-period) is above the midpoint and moving northward with a current reading of 62.95, indicating positive momentum in the stock prices. The trend following indicators 21-period and 50-period SMAs are below the current market price (CMP), supporting a positive trend and may act as the dynamic support levels for the stock in the near future.

Support/ Resistance Summary:

In the immediate term, it may test the resistance levels near INR 300 and INR 310; however, a modest correction might occur around the first resistance level. In contrast, the two closest troughs near INR 268 and INR 250 might serve as support levels.

After analysing the current price action and the technical chart, Supriya Lifescience Ltd has a good likelihood of continuing its current trend. Going by the chart pattern and technical indicators, a sustainable move at current levels may take prices towards the next upside movement. However, if it penetrates its closest support level at INR 250, which is a crucial support level, it might bring a fresh correction in the stock prices.