The formation of consecutive bearish candle stick patterns in Indian benchmark index are not going to provide any relief for the bulls early and the index is expected to remain on sidelines. The index has managed to bounce back after sensing support from its potential support at 11,765 levels but the clouds of volatility are not going to fade away until the market manages to cross the psychological resistance of 12,000 levels. Of all the indices pharma stocks are suffering with fever today as the index has erased 1.07% in today’s session. On daily scale, the index has given a breakout of its previous support that was placed at 8,260.57 levels. The index is expected to continue its bearish momentum as MACD has given a bearish crossover and hinting for more downside. RSI is showing some signs of bullish divergence that might provide some relief in a few days but no signs of oversold. Although MACD and RSI are not the only indicators to dictate the future prices, one can make use of other tools like Fibonacci, Andrew Pitchfork, Chart and Harmonic Patterns.
Some stocks of this counter are also witnessing heavy volumes and momentum that are convincing the emerging trend.
- Biocon: Top loser in pharma sector is trading at 526.20, 3.48% below from its previous close. The stock has hit its 52-weeks low of Rs.520.55 recently. The company has extended its commercial rights for bio-similar Adalimumab from Europe to global markets by Mylan.
- Dr Reddy’s Lab: Leading pharmaceutical producer is trading at 2579.6, 2.93% below from its previous close. The company is going to gist its domestic formulation business in coming quarters and possible acquisitions to fast track growth.
- Glenmark Pharma: High leveraged firm is trading at 525.25, 2.35% below from its previous close. The stock has posted an increase of 6.62% net profits in Q4FY19. The company has received USFDA nod for overactive bladder treatment drug on May 21, 2019.