Pharma Stocks Outlook: To take cues from broad market next week

[B. Karthick]

Pharma Stocks Outlook: To take cues from broad market next week
Saturday, Jul 5

Shares of pharmaceutical companies are seen tracking the broad
market next week while continuing to be a defensive option in a
volatile
market.
On charts, shares of front line drug companies are close to their
200-day moving average, and hence seen weak.
Cipla is close to its 200-day moving average of 206 rupees and has
support at 202 rupees.
Dr Reddy's Laboratories too is close to its 200-day moving average
of 639 rupees.
Dr Reddy's has support at 628 rupees, which if breached, price can
fall to 610 rupees.
Ranbaxy and Sun Pharma are trading above their 200-day moving
average, but not showing any direction on charts.
Ranbaxy and Sun Pharma have support at 501 rupees and 1,272
rupees, respectively, and resistance at 558 rupees and 1,425 rupees,
respectively.
This week, BSE Healthcare index was down 0.6% compared with BSE
Sensex that was down 2.5%.
The broad market is seen up next week, and drug shares are likely
to be less favoured as compared with other sectors.

Closing prices, in rupees, of leading pharmaceutical shares on
National Stock Exchange Friday, compared with a week ago:

Company Jul 4 Jun 27 %
Change

Cadila Healthcare 312.65
310.00 0.8
Cipla 208.10 210.75
(-) 1.3
Dr Reddy's Laboratories 645.15 657.25
(-) 1.8
GlaxoSmithKline Pharmaceuticals 1,138.70
1,125.95 1.1
Pfizer 555.30 572.50
(-) 3.0
Ranbaxy Laboratories 538.40
523.50 2.8
Sun Pharmaceutical Industries 1,323.10 1,341.25
(-) 1.3

BSE Healthcare Index 4123.29 4150.05
(-) 0.6
Nifty 4016.00 4136.65
(-) 2.9
Sensex 13454.00 13802.22
(-) 2.5
End

B.Karthick,
Research Analyst.