Pharma Stocks Outlook: Seen sideways next wk with positive bias

[K.Karthik Raja]

Pharma Stocks Outlook: Seen sideways next wk with positive bias
Friday, May 30

Shares of pharmaceutical companies are likely to see sideways
movement
with positive bias next week tracking the broad market.
Sun Pharma will be in focus, as its Jan-Mar standalone net profit
of 2.48
bln rupees was below market's expectations.
The Taro termination notice for merger had stemmed the upside
momentum in
Sun Pharma shares this week.
However, Sun Pharma is showing a firm upward trend with resistance
at
1,440 rupees for the week and support at 1,370 rupees.
Among other shares, Ranbaxy is set for a minor correction before
moving
up as it has broken the 525-rupee resistance level.Ranbaxy may face
resistance at 555 rupees for next week with support at 501 rupees.
Dr Reddy's Laboratories is seen up with resistance at 730 rupees
while
Cipla is seen sideways with resistance at 225 rupees.
In the mid-cap segment, Suven Life Sciences is seen attractive on
the
charts with resistance at 41 rupees and support at 30 rupees.

This week, BSE Healthcare index outperformed the benchmark indices,
as
pharmaceutical shares were bought as defensive bet.
Next week, the broad market is seen weak again and the same trend
in
pharma shares is seen continuing next week.

Closing share prices of leading pharmaceutical companies today, in
rupees, on National Stock Exchange, versus a week ago:

Company May 30 May 23 %
Change

Cadila Healthcare 297.00 299.35 (-)
0.8
Cipla 212.10 203.90
4.0
Dr Reddy's Laboratories 714.15 686.75
4.0
GlaxoSmithKline Pharmaceuticals 1,139.25 1,075.00
6.0
Pfizer 621.90 646.15 (-)
3.7
Ranbaxy Laboratories 528.30 496.90
6.3
Sun Pharmaceutical Industries 1,402.70 1,328.85
5.6

BSE Healthcare Index 4395.99 4229.03
3.9
Nifty 4870.10 4946.55 (-)
1.5
Sensex 16415.57 16649.64 (-)
1.4

K.Karthik Raja
Research Analyst