Nifty Pharma Index – Vibrant & Active

In our previous noteWe had highlighted that a break above 14,000 would take the index higher, but it is trading in a range of 13,300-13,700 as of now.

Pharma Index/Nifty50 at Reversal Levels

As the pharma index struggles to cross the 14K level, the Nifty Pharma / Nifty 50 ratio chart indicates a recovery in health for the pharma index.

A Bullish Gartley Harmonic Reversal pattern is visible on the weekly chart and the outperformance of Pharma Index on Nifty in the last few weeks confirms the reversal.

A positive crossover of the average into the oversold zone on MACD indicates a healthy structure for the Pharma Index.

Who can lead the Pharma Index?

Sun Pharma and Cipla are trading near their 52-week highs, while Divi’s Lab, Laura’s Lab and Aurobindo Pharma have outperformed the Pharma index in the recent past.

The pharma index will be in a good position for investors once it crosses 14,000.

At present, the Nifty Pharma index is trading 0.3% down at 13,560 level.

Cipla and Lupine are the top gainers in the index. While Dr Reddy’s Lab and Torrent Pharma are among the top losers.

Note that pharma stocks have been in focus of late as companies that are exporting drugs seem to be benefiting amid the ongoing geopolitical tensions.

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Disclaimer: This article is for informational purposes only. This is not a stock recommendation and should not be treated as such.

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