Pharma Stocks Outlook: Seen up next week; Ranbaxy, Glaxo in focus

[K.Karthik Raja]

Pharma Stocks Outlook: Seen up next week; Ranbaxy, Glaxo in focus
Friday, Mar 14

Frontline pharmaceutical shares are likely to continue to be a
much better bet amid weak broad market next week.
This week, BSE healthcare index was down only 0.1% as compared to
Nifty and Sensex that were down 0.5% and 1.3%, respectively.
Ranbaxy is seen up next week after it broke its 460-rupee
resistance this week
The Delhi-based pharmaceutical company's shares looks strong on
technical charts and has resistance at 475 rupees, if this level is
breached it can go up to 520-525 rupees
Among the other shares seen up next week are GlaxoSmithKline
Pharmaceuticals, Sun Pharma and Cipla.
Glaxo, Sun Pharma and Cipla are seen sideways with a positive bias
next week. Glaxo has resistance at 1,155 rupees and has an upside of
1,305-1,320 rupees, while Cipla can surge by 35-40 rupees a share if
it crosses 215-225 rupees resistance.
Sun Pharma has resistance at 1,385 rupees and support at 1,184
rupees for next week.
Dr. Reddy's Laboratories has resistance at 595 rupees and support
at 498 rupees, but declined to take a view on the company's share
movement for next week.
Investors would do well to focus on frontline drug company shares,
rather than mid-cap pharmaceutical shares next week.
Dabur Pharma might gain investor attention next week after
today reported Dabur Research Foundation had completed phase II
clinical trials for its peptide molecule for colon and perampullary
cancer.
Closing share prices, in rupees, of leading pharmaceutical
companies on National Stock Exchange, on Friday, versus a week ago:
.
Company Mar 14 Mar 7 %
Change
.
Cadila Healthcare 242.90
234.15 3.7
Cipla 205.60
200.95 2.3
Dr Reddy's Laboratories 539.95 569.45
(-) 5.2
GlaxoSmithKline Pharmaceuticals 1,050.55 1,090.10
(-) 3.6
Pfizer 631.65 651.25
(-) 3.0
Ranbaxy Laboratories 464.35
434.35 6.9
Sun Pharmaceutical Industries 1,292.65 1,318.45
(-) 1.9
.
BSE Healthcare Index 3820.64 3825.95
(-) 0.1
Nifty 4745.80 4771.60
(-) 0.5
Sensex 15760.52 15975.52
(-) 1.4


K.Karthik Raja