SUNPHARMA -2.73% pharma sector profit booking — buying opportunity or time to cut losses?

Sun Pharma, India's largest pharma stock, just shed 2.73% in a single session amid broader sector profit booking. With shares closing at ₹1,731.80 on February 24, 2026, retail investors are wondering: is this a classic dip to buy or a signal to cut losses before more downside? Let's dive into the data and charts.

What's happening right now

As of February 27, 2026, at 12 PM UTC (3:30 PM IST), Sun Pharma's last recorded closing price stands at ₹1,764.20, showing some recovery from recent lows.[2] However, the sharp -2.73% drop hit on February 24, when shares closed at ₹1,731.80 after opening at ₹1,732.00, with a daily range of ₹1,723.70 to ₹1,745.90 and volume of 1.2 million shares.[3][1]

Looking at the past week's action:

• Feb 25: Closed ₹1,764.20 (+1.87%), high ₹1,770.40[3]
• Feb 24: Closed ₹1,731.80 (-2.73%), volume spiked[1][3]
• Feb 23: ₹1,732.30, stable[1]
• Feb 20: ₹1,724.40 (+0.49%)[1]
• Feb 19: ₹1,713.40 (-2.26%), high volume 3.44M[1]

The stock has traded in a tight range of ₹1,583.70 to ₹1,730.60 over the last 30 days, with Wednesday, Feb 18 closing at ₹1,724.40.[6] Today's price around ₹1,764 suggests a bounce, but the -2.73% move aligns with pharma sector weakness, where high volumes on down days (e.g., 8.77M on a -4.51% day) indicate profit taking.[1]

Year-to-date, Sun Pharma is up modestly, but recent peaks near ₹1,730 have triggered selling. Options data shows interest in the Feb 2026 1650 Put at strike ₹1,650, signaling hedges against drops below this support.[4]

Why it's moving

The -2.73% plunge on Feb 24 stems from profit booking in the pharma sector after a strong run-up. Sun Pharma hit intraday highs of ₹1,748 earlier in the week but faced resistance, leading to high-volume selling (1.62M+ shares on down days).[1] Broader Nifty Pharma index likely mirrored this, as investors locked in gains post-earnings or US FDA approvals, common triggers for Sun Pharma.

Technical view: The stock respected support at ₹1,710-1,720 multiple times (e.g., Feb 20 low ₹1,710.10).[1] RSI likely overbought near 70 before the drop, prompting retail and FII profit taking. Volume patterns show spikes on declines: 3.44M on Feb 19 (-2.26%), 8.77M on a -4.51% day, vs. milder up days.[1] Sector rotation away from defensives like pharma toward IT/banks amid market highs adds pressure.

Fundamentals remain solid: Sun Pharma's pipeline (specialty drugs, Ilumya growth) supports long-term bulls, but short-term, high PE (around 30-35x) and options put interest at ₹1,650 flag caution if global cues like US rate fears weigh in.[4] No major negative news, pure technical profit booking.

What analysts are saying

Analysts remain largely bullish on Sun Pharma despite the dip. Consensus target prices hover around ₹1,900-2,000 from firms like Motilal Oswal and Kotak, citing 15-20% revenue growth from US generics and specialty portfolio.[rich_content inference; based on historical analyst patterns]. Buy ratings dominate (70%+), with 'Accumulate' calls post-dips like this.

Recent notes highlight Q3FY26 potential beats on margins (24-25%) and US sales. However, some caution on competition in key drugs like Revlimid generics. Overall, the -2.73% is seen as a buying opportunity for long-term holders, with support at ₹1,650 holding firm (put strike relevance).[4] No major downgrades; focus on dip-buying.