Glenmark Pharma Surges On Strong Volumes, Technical Indicators, Says SEBI RA Vijay Gupta

Glenmark shares have rallied nearly 20% in the last five sessions. Last week, it signed an exclusive licensing deal with AbbVie for its cancer drug. And over the weekend, the company received a warning letter from the USFDA for its Indore manufacturing facility following an inspection conducted from February 3 to 14. 

Glenmark has, however, stated that the letter is not expected to impact supplies or revenues, adding that there were no data integrity issues.

At the time of writing, the stock extended gains, trading 1.6% higher at ₹2,210.

The price breakout was supported by record-breaking volumes of 15.68 million shares, far exceeding the daily average of 1.89 million, said SEBI-registered analyst Vijay Kumar Gupta.

All indicators point to a positive trend on the Ichimoku chart, the analyst noted. The price has shot above the Kumo cloud while the Tenkan-sen and Kijun-sen lines have confirmed a bullish crossover, with the Chikou Span positioned well above current price levels.

Momentum indicators remain bullish, with the commodity channel index (CCI) rising to 336+, reflecting extremely overbought conditions. While this may lead to intra-day volatility, the strength of the move suggests that momentum could carry forward. The on-balance volume (OBV) shows no divergence, reinforcing that the demand is strong and can be sustained.

The analyst sees resistance in the ₹2,280 - ₹2,300 range, with immediate support in the ₹1,960 - ₹2,010 zone. There’s a minor gap risk between ₹1,880 and ₹1,950 in case of profit booking, he added.

Gupta recommended buying the dips while taking up new positions, instead of chasing the rally. Existing holders should place a stop-loss near ₹1,980.

Retail sentiment remains ‘bullish’ on Stocktwits, amid ‘extremely high’ message volumes.

Glenmark Pharma shares have gained more than 20% over the past week and has surged over 36% year-to-date.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Share

·

Add us on