Pharma Stocks Outlook: Seen sideways next week; Ranbaxy may gain

[Sukumar]

Pharma Stocks Outlook: Seen sideways next week; Ranbaxy may gain
Friday, Apr 4

MUMBAI - Shares of pharmaceutical companies are seen moving
sideways next week tracking the broad market with Ranbaxy being an
exception.

Ranbaxy will continue its upside momentum next week as it is
looking
strong on the charts too.

The stock is likely to face resistance at 470-475 rupees, which if
breached, can rise to the level of 510-520 rupees.

The stock may get support at 441 rupees.

Ranbaxy shares are in the limelight as investors perceive it as a
safe
bet in a weak market.

Cipla is likely to face resistance at 225 rupees and get support
202
rupees, which is also its 200-day moving average. The stock may surge
only iftops the 225-rupee level.

Dr Reddy's Laboratories stock is likely to face resistance at 625
rupees,which is also its 200-day moving average.

If the stock breaches this level, it may rise to 675-680 rupees,
while
the support level is seen at 560-575 rupees.

Sun Pharmaceutical Industries is likely to show a sideways
movement with resistance seen at 1,320 rupees and support at 1,175
rupees.

Among mid-cap shares, Glenmark Pharmaceuticals may face strong
resistance at 525 rupees and can rise only if they breach this level.
The stock may get support at 450 rupees next week.

Bombay Stock Exchange's healthcare index declined 0.2% this
week,compared to 6.0% decline in benchmark indices.

As the benchmark indices are seen weak, investors may buy shares
of pharmaceutical companies as a safe bet.

Closing share prices, in rupees, of leading pharmaceutical
companies on National Stock Exchange, on Friday, versus a week ago
.
Company Apr 4 Mar 28
% Change
.
Cadila Healthcare 250.00
254.95 (-) 1.9
Cipla 213.05
217.65 (-) 2.1
Dr Reddy's Laboratories 598.40
592.60 1.0
GlaxoSmithKline Pharmaceuticals 974.30 1,047.80 (-)
7.0
Pfizer 672.35
662.00 1.6
Ranbaxy Laboratories 458.80
438.65 4.6
Sun Pharmaceutical Industries 1,241.15 1,252.40 (-)
0.9
.
BSE Healthcare Index 3845.83 3855.01
(-) 0.2
Nifty 4647.00
4942.00 (-) 6.0
Sensex 15343.12
16371.29 (-) 6.3

N.Sukumar
Research Analyst
www.kences1.blogspot.com