Pharma Stocks Outlook: Seen range bound with positive bias next wk

[B. Karthick]

Pharma Stocks Outlook: Seen range bound with positive bias next wk
Saturday, Aug 9

Shares of pharmaceutical companies are seen range bound with a
positive bias next week.
Pharma stocks have been moving in sync with the broad market over
the past three weeks and the trend is seen continuing.
Cipla is seen strong next week with resistance at 245 rupees,
which if breached the stock could touch 265 rupees.
Apart from Cipla, most other frontline pharma shares are seen
range bound.
Ranbaxy and Sun Pharmaceuticals Industries have resistance at 549
rupees and 1,486 rupees, respectively, and support at 462 rupees and
1,370 rupees.
Sun Pharma looks strong in the long term, though next week it will
remain range bound.
GlaxoSmithKline Pharmaceuticals may find support at 1,068 rupees
and face resistance at 1,175 rupees.
Dr. Reddy's Laboratories, which gained over 7% this week, is seen
weak in the coming week with resistance close to its 200-day moving
average of 635 rupees.
Among mid-cap stocks, FDC shares look attractive on charts with
initial resistance at 38.50 rupees, which if surpassed the stock could
rise to 45-47 rupees in the next few weeks.
Shares of mid-cap pharma companies are likely to gain after the
National Pharmaceutical Pricing Authority raised prices of 186
formulations.

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

Company Aug 8 Aug
1 % Change

Cadila Healthcare 336.25
310.80 8.2
Cipla 235.05
220.00 6.8
Dr Reddy's Laboratories 625.90
584.85 7.0
GlaxoSmithKline Pharmaceutical 1130.50 1115.35
1.4
Pfizer 598.85
588.30 1.8
Ranbaxy Laboratories 504.95 510.15
(-) 1.0
Sun Pharmaceutical Industries 1440.70 1444.55 (-)
0.3

BSE Healthcare Index 4296.17
4190.84 2.5
Nifty 4529.50
4413.55 2.6
Sensex 15167.82
14656.69 2.7

End


B.Karthick,
Research Analyst.