Sun Pharma At Turning Point: Can It Break ₹1,650 Resistance? SEBI Analyst Weighs In

Sun Pharmaceutical shares are hovering near ₹1,610 after bouncing back from support at ₹1,580, where buyers stepped in to defend the level. 

Technical View

SEBI-registered analyst Deepak Pal said the stock has managed to stabilize, but it is still trading below its short- and medium-term moving averages, which are acting as resistance between ₹1,630 and ₹1,650. 

He said that if it closed above this support band, it would show strength and may clear the path for a rise towards ₹1,685–₹1,720. On the downside, the 200-day moving average near ₹1,550 continues to provide strong support.

According to Pal, momentum indicators suggest the stock is at a turning point. The Parabolic SAR is still showing a cautious signal, with dots above the price, though a few more positive sessions could flip this into a buy. 

The relative strength index is sitting at 49, marking a neutral zone that shows the stock isn't stretched on either side. 

Pal also pointed to the moving average convergence divergence (MACD), which is flattening out below the signal line. If a crossover happens, he said, it would confirm a shift in momentum to the upside.

Fundamental View

Pal noted that Sun Pharma continues to stand out as India's largest pharmaceutical company, with leadership in chronic therapies, dermatology, and specialty drugs in the U.S. market. 

Its growth pipeline is backed by a strong lineup of specialty products and acquisitions in emerging markets. In the first quarter (Q1), the company reported steady revenue growth led by its U.S. specialty portfolio and domestic formulations. 

Margins also improved slightly thanks to cost-control measures.

Industry And Global Backdrop

The larger environment, though, Pal said, is still conducive. Healthcare demand is increasing, U.S. patent cliffs are creating space for Indian generics, and worldwide demand for generic and specialty drugs is robust. 

U.S. regulatory approvals have also accelerated in the past year, a positive for Sun Pharma and its peers. The risks to the company include U.S. pricing pressure for generics, regulatory risks and currency volatility.

What Could Move The Stock Next

Looking ahead, Pal said a few factors could be key triggers. Approvals or inspections from the US regulator, second quarter (Q2) earnings, and any new government policy announcements on health care spends or manufacturing-linked incentives may impact sentiment, he said. 

Adding that global developments, such as any shifts in the US drug pricing regime or outcome of patents, may also move investor sentiment.

Investment View

For the short term, Pal expects Sun Pharma to trade in a range between ₹1,550 and ₹1,650, with a breakout above ₹1,650 creating room for ₹1,685–₹1,720. 

Over the medium term, he sees a stable outlook, supported by U.S. specialty product growth, with targets between ₹1,750 and ₹1,820. In the long run, he believes Sun Pharma's leadership, pipeline, and international expansion could eventually push the stock above ₹2,000.

What Is The Retail Mood?

On Stocktwits, retail sentiment was 'bearish' amid 'normal' message volume.

Sun Pharma's stock has declined 14.5% so far in 2025.

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