This small-cap pharmaceutical stock soared 20 per cent! Time to buy?

The 20-DMA level lies at Rs 35 and a move above this level can attract strong buying interest. It has the potential to test the level of Rs 43, and thereafter, Rs 45 in the medium term. With rising volumes, the possibility is even more.

Lasa Supergenerics Limited (LASA) is a Top Gainers from the Group B category of BSE.   

The technical chart of the stock looks dreadful as it has plunged about 90 per cent from its lifetime high and about 70 per cent from its 52-week high level. It is disappointing to note that the stock has been in a strong downtrend for the past six weeks with high volumes. However, the stock is in limelight because of its oversold levels and Friday’s strong price action.   

Despite the overall bearishness, the stock showed positive sentiment on Friday. On the daily chart, it formed a strong bullish candle and got locked in the upper circuit. What it shows is a start of a possible short-term uptrend as the 14-period daily RSI (36.53) has jumped from its oversold counters sharply. The MACD might indicate a bullish crossover in the coming days. Also, the OBV has seen a good jump, indicating improving strength from the volume’s perspective.   

However, it would be too early to say if the stock has changed its course. The 20-DMA level lies at Rs 35 and a move above this level can attract strong buying interest. It has the potential to test the level of Rs 43, and thereafter, Rs 45 in the medium term. With rising volumes, the possibility is even more.  

Keep an eye on this stock as it can show good trading opportunities in the coming days.