The domestic stock markets were trading in the green on Monday, recovering from the Friday losses. The BSE Sensex was trading at 57,420.24, up by 295 points or 0.52 per cent at at the closing time while the broader market Nifty 50 was also up 0.5 per cent or 82 points at 17,086 around this time. Among the sectoral indices, two were trading in the red while the remaining 13 were moving positively.  

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The top performing indices included Nifty Pharma, Nifty Healthcare Index and Nifty Financial Services. The duds included Nifty Media and Nifty Metal indices.  

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The spotlight was on Nifty Pharma as the index was the top gainer around the closingtime. It was trading at 13,710.15 and near its intraday high, up 1.6 per cent from the Friday closing level. In the 20-share index, 19 advanced while one stock declined. The biggest gainers were Natco Pharma Limited, Laurus Labs Limited and Strides Pharma Science Limited which were up over 4.7 per cent, 3.6 per cent and 3.6 per cent respectively. Meanwhile, Pfizer Limited, which was the only loser around this time was down 0.8 per cent from the Friday closing price.  

Technical Analyst Nilesh Jain was bullish on this sector and recommended three stocks that he said were candidates for high gains from the current levels. 

Jain is is Assistant Vice President (AVP), Equity Research Technical and Derivatives at Centrum Broking.  

He said that Nifty Pharma index has reclaimed its 200-Day Exponential Moving Average (DEMA) which is an indicator of strength. On the lower side, the index has tested a bottom of 13,000. It has also seen a breakout from its recent low of 13,500. The current momentum suggest that it could test 14,000 which is an immediate hurdle. If this is breached, the next target will be 14,300. This is a short term view on the index, he further said. 

He recommended three stocks for buying when the markets reopen on Tuesday – Cipla Limited, Alembic Pharmaceuticals Limited and Granules India Limited.  

1) Cipla: Buy| LTP: Rs 928| Target: Rs 880| Stop Loss: Rs 1000| Upside 7-8% 

This stock was trading positively today and with gains of 2.3 per cent, minutes before the closing time. The counter has a strong support around Rs 880, from where it has turned back after witnessing multiple swing lows, Jain said. It has a buy crossover on MACD and a reversal on the RSI, which is an indicator of strength, he further said.  

2) Alembic Pharma: Buy| LTP: Rs 776| Target: Rs 900| Stop Loss: Rs 725| Upside 15% 

Another stock that was trading positively from the pharma stable. It was up 1 per cent around this time from the previous closing price. It has witnessed a triple bottom formation around Rs 720. The risk-to-reward ratio is favourable at current levels, he said. It has a hurdle at Rs 820. 

3) Granules: Buy| LTP: Rs 340| Target: Rs 400| Stop Loss: Rs 305| Upside 17% 

The stock was trading up 3.6 per cent on the NSE at Rs 340.60. It has a support at Rs 305 which must be treated as a stop loss. The stock has seen a breakout from the long term exponential moving average, which is a positive. He has a positional term view on this stock.     

(Disclaimer: The views/suggestions/advises expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)