After the U.S. Federal Reserve manage to cheer Indian markets by taking a neutral stance on borrowing rates till next Fed meet with dovish tone for further projections, Nifty50 has been bounced back after sensing a strong support form 11,625 levels and expected to continue with its bull rally as a pre-budget rally. All indices are trading in green territory while pharma stocks gained the most, currently trading at 7,966.2, 2.26% above from its previous close. On daily scale, the index has been bounced back after forming a ‘Spring’ that forms after a counter close below its potential support but bounce back as selling climax take place. The index needs to sustain above the psychological support of 7,900 levels to continue for more upside. RSI is trading at 31.20 and given a sharp reversal after sensing the oversold situation. MACD is hinting for a little consolidation in coming sessions. Although RSI and MACD 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.
- Piramal Enterprise: Top gainer in today’s session is trading at 1,874, 7.50% above from its previous close. The company has sold its entire stake in Shriram Transport for Rs. 2,305 crores. There has been a block deal of 31,235 shares on May 16, 2019.
- Divi’s Lab: Leading midcap pharmaceutical company is trading at 1,586.36, 2.84% above from its previous close. There has been a block deal of 79,695 shares on June 12, 2019. The stock is trading above 200 days Exponential Moving Average.
- Sun pharma: India’s largest pharmaceutical brand is trading at 386.4, 2.89% above from its previous close. The company has announced a promising data for new indication on Ilumya drug.