SEI Strategies for Investing in Marksans Pharma: A Technical Analysis Approach

The stock market is known for its unpredictable nature, and investing in penny stocks can be particularly challenging. With Marksans Pharma, a pharmaceutical company, the market has experienced a significant upward trend. Here, we provide a technical analysis perspective to guide potential investors on how to navigate the market conditions and make informed investment decisions.

Current Market Conditions and Technical Analysis

As of the current date, the technicals of Marksans Pharma, as depicted in the daily charts, indicate a buying opportunity at around Rs 83 per share with a stop loss at Rs 74. The targets for the next 1-2 quarters are set at Rs 98 and Rs 114. It is important to note that these recommendations should not be viewed as investment advice, and investors should consult with a qualified financial advisor before making any investment decisions.

The Past Year's Performance

Last year, from April to June 2021, Marksans Pharma saw a significant rise from Rs 50 to Rs 75, marking a gain of Rs 50, and another rise from Rs 70 to almost Rs 100 during the same period. As of now, the closing market price (CMP) is Rs 87.35. Analysts predict that the stock may close around Rs 90 for this month.

However, it is crucial to note that the stock has undergone a substantial rise from Rs 50 to Rs 100 in just three months. This indicates the need for a meaningful correction to avoid overbooking the stock. It is recommended to start accumulating slowly at levels below Rs 80 to benefit from any additional momentum in the remaining months of 2021.

Challenges in Predicting Penny Stocks

When it comes to predicting the appreciation of penny stocks like Marksans Pharma, technical analysis alone can present significant challenges. Much of the price movement in such stocks is subject to manipulation, making it difficult to gauge precise future performance. Therefore, it is advisable to adopt a swing or short-term trading strategy under suitable technical conditions rather than relying on full-year returns.

When analyzing the results of Marksans Pharma from September 2020 and December 2020, it is evident that there has been no remarkable change in the company's performance. The stock has been trading within a narrow range of Rs 65 to Rs 55, showing strength near Rs 60, making a down trend highly unlikely. There is no doubt that the company is a good stock with a turnaround potential, but the positive results are expected to be visible after March 2021.

Key Takeaways

Investing in penny stocks like Marksans Pharma requires a thorough understanding of technical analysis and an awareness of market manipulation. It is critical to adopt a strategic approach and stay updated with market conditions. The key points to consider are:

Identify buying opportunities at current levels and set stop losses appropriately. Expect price corrections after substantial gains. Consider swing or short-term trading for better returns. Be cautious of market manipulation and make informed decisions.

For detailed insights and a deeper understanding of Marksans Pharma's financial health, it is recommended to review the latest financial reports and consult with a financial advisor. This article is for educational purposes only and should not be construed as investment advice.