NSE:SUNPHARMA   SUN PHARMACEUTICAL
How 200 DMA decides the fate of a stock and its prevailing future trend is more than explicit in this example. 100 and 50 DMAs work in support of 200 DMA. In this case, price tried a number of times to raise head above 200 DMA yet it could not hold the head for more than a few days. This is a significant lesson for successful trading and investment. At the same time it is simple. Once cannot invest in such stocks. For trading the strategy is: 'Sell on rise'. Rise to what? 200 DMA of course. By following this strategy, Sun Phrma has created more than 10 very successful and highly profitable trades during this slide. One can select 20 or 30 such stocks to study in each section -- Uptrend and Downtrend. So one remains in profitable trades almost every trading session. I shall also cover one stock in Uptrend to drive home the basics.
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