Sector Spotlight – Pharma stocks in focus today as Nifty Pharma index witnesses trend reversal; analyst picks these two shares for high gains
In the 20-share index, 17 advanced while 3 declined. The 52-week high is 14,938.25. The biggest gainers were Divi’s Laboratories Limited followed by Sun Pharmaceuticals Industries Limited and Strides Pharma Limited which were up almost 2.9, 2.1 and 2.1 per cent respectively
The stock markets were trading positively on Wednesday. While the BSE Sensex was trading up over 126 points or 0.21 per cent at 61,476.96, the 50-share Nifty50 index was higher by almost 42 points or 0.23 per cent around 2 pm. Nifty Pharma was in focus today. Technical Analyst Nilesh Jain gives the sector outlook and gives his top picks for today for gains.
Nifty Pharma was trading at 14,155.65 around this time, gaining almost 1.3 per cent or 185 points from the last closing on Tuesday. This sector has been a laggard in the overall market movement and is now looking at an upside, Jain said. He is Assistant Vice President (AVP), Equity Research Technical and Derivatives at Centrum Broking.
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Nifty Pharma is deriving a strong support at its 200-day moving average and made a double bottom at 13,600 level, he added.
The AVP said that the trends have reversed for this index and an upside looks imminent from here. It is well poised to test levels around 14,500, he added.
In the 20-share index, 17 advanced while 3 declined. The 52-week high is 14,938.25. The biggest gainers were Divi’s Laboratories Limited followed by Sun Pharmaceuticals Industries Limited and Strides Pharma Limited which were up almost 2.9, 2.1 and 2.1 per cent respectively.
The biggest losers were Torrent Pharmaceuticals Limited, Natco Pharma Limited and Glenmark Pharmaceuticals Limited. The stocks were down 3.5 per cent, 1 per cent and 0.25 per cent.
Jain picks Sun Pharma and Divi’s as his top pick for gains.
Sun Pharma was trading at Rs 829.05 on the NSE around this time, up 1.9 per cent from the last closing price. He puts a buy for target of Rs 870 and Rs 900. The stop loss is at Rs 800.
The stock has not participated in the market bull run and has been consolidating sideways. The stock is trading near its breakout levels of Rs 851, which is also its 52-week high which it hit on 18 October 2021.
Another stock picked by him was Divi’s. This stock is recommended for a price target of Rs 5400 and Rs 5500. The support in this stock is seen at Rs 4900, which should also be taken as a stop loss. The stock has seen a breakout from the falling channel pattern.
The stock was trading at Rs 5155, up almost 2.7 per cent or by Rs 136 around this time. The 52-week high is Rs 5425, which it hit on 18 October 2021.
(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.)
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