After hitting highs of Rs110 in mid-January 2014, Dishman Pharma slipped sharply to hit intermediate low of Rs76. From there on, the stock has been steadily consolidating. Accumulation between Rs76 - Rs90 range was witnessed during February.

In the process, the stock has formed an inverted head and shoulder (H&S) pattern, which is considered to be bullish. Dishman Pharma broke out of the inverted H&S pattern on March 05, 2014 on the daily chart. The breach has been accompanied with strong up-tick in traded volumes, adding credence to the breakout.

During the consolidation phase, the stock has gradually surpassed key moving averages, and has recently managed to also surge past its 100 Day Moving Average (DMA) as is visible in the daily chart.

Given the intermediate uptrend, the stock is expected to rise post the breach of the 50 DMA, which is placed at Rs92.7. Traditional momentum oscillators are also indicating a positive bias in the counter.

Given the above evidence, we recommend a BUY on Dishman Pharma at current levels for a potential upside target of Rs103. Traders are advised to keep a strict Stop Loss of Rs84.