Alkem Laboratories Ltd. (NSE: ALKEM)

Technical Analysis and Key Levels

1.Current Price Action:
Alkem Laboratories is trading at ₹5,484.40, testing a critical support zone (₹5,300–₹5,450) identified by historical price action and volume profile.

2.Resistance and Support Levels:

• Immediate Resistance: ₹5,811.55 (previous swing high).
  
• Key Resistance Zone: ₹6,000–₹6,346.55. A breakout above ₹6,346.55 can lead to fresh bullish momentum.
  
• Immediate Support: ₹5,323.60 (near-term support).
  
• Critical Support: ₹4,629.85, a major demand zone. Failure to hold this level could trigger further downside.
  

3.Volume Profile:

• High-Volume Node (HVN): Significant buying interest is observed around ₹5,450–₹5,800.
  
• Low-Volume Node (LVN): Below ₹5,300, liquidity decreases, increasing the risk of a sharp drop toward ₹4,629.85.
  

4.Moving Averages:

• The stock is currently hovering around the 50-day moving average, indicating short-term indecision.
  
• The 200-day moving average at ₹5,323.60 acts as crucial support for long-term trend analysis.
  

5.RSI Indicator:
The RSI is neutral but leaning towards the oversold region, suggesting potential accumulation in this zone. A break below ₹5,323 could push RSI into bearish territory.

6.Key Observations:

• Nomura's Price Target Update: Nomura revised the price target to ₹6,097 (Neutral stance), close to the immediate resistance levels, which aligns with market consolidation.
  

7.Potential Scenarios:

• Bullish Case: Sustaining above ₹5,484.40 and breaking ₹5,811.55 may open doors for ₹6,346.55.
  
• Bearish Case: A decisive break below ₹5,323.60 could lead to ₹4,629.85.
  

8.Trading Strategy:
For Bulls: Look for confirmation above ₹5,811.55 with increased volumes before entering long positions.
For Bears: Short opportunities arise if the stock breaks and sustains below ₹5,323.60 with a target near ₹4,629.85.