Sun Pharmaceuticals Breaks Out of Downtrend — What It Means for Investors

Sun Pharma has broken a long-standing downward trendline on its weekly chart, triggering signals that the stock may push higher over the coming months. Technical analysts now see potential for a rise to Rs 1,990 over the next 2–4 months, with a suggested stop-loss below Rs 1,690 for medium-term traders.

The breakout follows a prolonged period where the stock struggled to sustain momentum, even though it had reached a high of Rs 1,910 at the end of December 2024. The rebound from support — reportedly near the 100-week line — underpins optimism among technical analysts that a bullish phase could be unfolding.

That said, the broader business context of Sun Pharma shows mixed signals. The company’s Q4 FY25 results revealed a 19 per cent y-o-y drop in net profit, though revenues rose by 8.5 per cent. Continued concerns around US-market exposure, regulatory risks and global pricing pressures remain relevant for investors.

Given this backdrop, the technical breakout may offer a window of opportunity — but gains could be tempered if macro or sectoral headwinds return.

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