The stock of Sun Pharmaceutical Industries (₹1,695.10) has been moving in the ₹1,850-1,550 range since early 2025. Immediate resistance levels are ₹1,717 and ₹1,829. A close above the latter will trigger a fresh rally and could lift the stock to new heights.

Nearest support levels are ₹1,620 and ₹1,467. A close below the latter can alter the long-term positive outlook. Overall, we expect the stock to sustain the bullish trend with short-term volatility and try to pierce the upper band.

F&O pointer: Sun Pharma Feb futures closed at ₹1,696.30 against the spot price of ₹1,695.10. The counter saw unwinding of open positions in the last few days even as the futures rose from ₹1,600 to ₹1,700, signalling profit taking. Option trading indicates that the stock may move between ₹1,600 and ₹1,800.

Strategy: Buy Feb 1,700-call on Sun Pharma. As the option closed with a premium of ₹25.50, this strategy will cost the traders ₹8,925 (market lot of 350 shares), which will be the maximum loss. This will happen if Sun Pharma fails to cross ₹1,700. The breakeven point is ₹1,725.50.

Target can be ₹35. Stop-loss can be ₹10 and consider trailing as the premium rises. If the stock opens on a flat to positive note on Monday, the stop-loss can be shifted to ₹17. Traders can stay away from this strategy if Sun Pharma opens either sharply higher (above ₹1,720) or lower (₹1,675).

Note: The recommendations are based on technical analysis and F&O positions. There is a risk of loss in trading.

Published on February 7, 2026