Stocks to buy or sell: Of the 20 pharma stocks listed in the Nifty Pharma index, only two — Sun Pharma and Cipla — have given returns to their shareholders in the past one year. The remaining 18 stocks have given zero returns to their positional investors during this period. Of these 18 Nifty pharma stocks, Strides Pharma share price has crashed maximum 45 per cent in the last one year, while Gland Pharma, Natco Pharma, Lupine and Zydus Lifescience stock price followed it up with 38 per cent, 37 per cent annual loss. are doing. 33 percent and 32 percent respectively. The share price of Divi’s Lab has also fallen more than 30 percent in the past year. However, in the recent sessions, the Nifty Pharma index has recently closed its short term 20 DMA barrier, fueling speculation about an upcoming rally in pharma stocks.
Complete List of Nifty Pharma Indexes
see full image
Anticipating recovery in the pharma sector, Sonam Srivastava, Founder, Wright Research, said, “The profitability of Indian pharma companies has been severely impacted by higher freight costs and pricing pressure. The pharma sector’s decline in the recent June-quarter results We expect this segment to improve in the coming quarters. This will be in line with analysts’ expectations of the Indian pharma market growing 10-12% in FY13.”
Speaking on chart patterns with respect to nifty pharma indexRuchit Jain, Lead Research at 5paisa.com said, “Nifty Pharma Index has gradually corrected with markets from October 2021 highs. However, Nifty has seen a sharp decline in the past few months, but not seen in Pharma Index. Value-wise very upward move and relatively underperformed.The index recently resisted its ‘200 DEMA’, which is still trading below that important hurdle. But there are some early signs of buying interest as the index finished above its short-term barrier of 20. DEMA and Momentum readings on the daily chart have given positive crossover. Also, the recent price structure indicates that the index is in an ‘inverted’ Is forming a ‘Head and Shoulders’ pattern which is a bullish pattern and is currently in the process of forming the right shoulder.”
Check out the Nifty Pharma chart pattern below:
see full image
The 5paisa.com analyst further said that the pattern will be completed if the index moves towards the 13,000 to 13,100 level and gives a breakout beyond that.
“So looking at the above structure, we anticipate a revival in some pharma names in the near term and hence, traders should start allocating some capital to pharma names and if Nifty pharma crosses its hurdle. Should add aggressively. A range of 13000-13100 in the near future. Above this resistance, a possible target for the index would be seen around 14000, while 12300 would now be seen as a sacred support,” Jain said.
Buy or Sell: Uptrend in pharma stocks
Commenting on today’s buy on Nifty Pharma shares, Ruchi Jain of 5paisa.com said, “Cipla share price has recently formed a support base. 900 points and has been forming a ‘higher top higher bottom’ structure since then. Prices are trading in a ‘rising channel’ which indicates an uptrend in the stock. Moreover, the ‘RSI Smoothed’ oscillator has given a positive crossover after cooling-off from the overbought zone. Thus the technical chart structure is bullish, and is indicating a continuation of the uptrend. Therefore, traders may wish to deposit the stock around the current market price. 1,050 want to move further down For a possible target around 1,025 For 1,160 long positions, the stop loss should be placed below the swing low 990.”
Check below Cipla share price chart:
see full image
Sonam Srivastava of Right Research on Stocks to Buy from Pharma Segment said, “It is indeed an opportune time to reset investing in pharma stocks. Blue chip stocks like Lupine, Glenmark, Sun Pharma, Dr Reddy’s are coming. is expected to lead in the rally. However, investors need to be cautious as SEBI has recently asked pharma companies to disclose details and this has the potential to influence the stock prices.”
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
catch all business News, market news, today’s fresh news events and breaking news Updates on Live Mint. download mint news app To get daily market updates.