High-Conviction Breakout Alert: Alkem Laboratories Limited (ALKEM)

Generated on: 07 Jan 2026, 03:21 PM IST | Market Regime: BULLISH

Why Alkem Laboratories is a Strong Buy

Alkem Laboratories Limited (ALKEM) is currently showing a robust Relative Strength Breakout with a current market price (CMP) of ₹5800.0. The stock has recently broken out of a significant resistance level at ₹5727.5, indicating strong bullish momentum. This breakout is supported by impressive institutional volume, which is currently at 2x the average, suggesting that large players are accumulating shares, further validating the strength of this move.

Additionally, the Relative Strength Index (RSI) momentum is at a remarkable 3.2x, indicating that the stock is not only outperforming the Nifty index but also has strong buying interest. This combination of structural breakout and volume analysis makes ALKEM a high-conviction buy for traders looking to capitalize on upward price movement.

Split Target Strategy

For this trade, we recommend a split target strategy. This involves booking 50% of your position at Target 1, which is set at ₹6015.52, and allowing the remaining position to run towards Target 2 at ₹6231.03. This strategy helps in securing profits while still participating in potential further upside.

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Conclusion

In conclusion, Alkem Laboratories Limited presents a compelling trading opportunity with its strong breakout signals and institutional support. We encourage traders to monitor this stock closely and consider executing trades based on the outlined strategy. For detailed charts and further analysis, check your TradingView account or your broker app.

Disclaimer: This alert is for informational purposes only and should not be considered as financial advice. Please conduct your own research before making any investment decisions.