Pharma Stocks Outlook: To consolidate next wk, Sun Pharma in focus

[K.Karthik Raja]

Pharma Stocks Outlook: To consolidate next wk, Sun Pharma in focus

Chennai - Consolidation is the buzzword for pharmaceutical
companies shares amid weak sentiment in the broad market, dealers
said.
This week, Bombay Stock Exchange Healthcare index fell 2.6% as
compared with a 9.1% fall in the benchmark Sensex.
Investors may buy shares of drug companies as a defensive bet if
this weak trend in the broad market continues.
Among front line shares, Cipla, Dr Reddy's Laboratories, and
Ranbaxy are seen consolidating on charts while Dr Reddy's Laboratories
is seen down next week.
Sun Pharma is the only share with a clear up-trend, with
resistance at 1,340 rupees and support at 1,250 rupees,Cipla and
GlaxoSmithKline Pharmaceuticals have resistance at 220 rupees
and 1,155 rupees and support at 195 rupees and 1,000 rupees,
respectively.
Dr Reddy's that is seen downward next week has support at 545
rupees from where it has the potential to bounce back,Ranbaxy is seen
range-bound with resistance at 450 rupees and support at
415 rupees.
Mid-cap pharmaceutical shares have also fallen and are looking
attractively valued but the fall in front line drug shares have
negated their valuation
Aurobindo Pharma, for instance is available at 305.05 rupees, which
is half the price it was trading in September.
Similarly, Alembic shares were trading at 48 rupees from its peak
of over 100 rupees in December.
.
Closing share prices, in rupees, of leading pharmaceutical
companies on National Stock Exchange on Friday, versus a week ago:
.
Company Mar 7 Feb 29 %
Change
.
Cadila Healthcare 234.15 260.85
(-)10.2
Cipla 200.95 207.10
(-) 3.0
Dr Reddy's Laboratories 569.45 583.70
(-) 2.4
GlaxoSmithKline Pharmaceuticals 1,090.10 1,111.15
(-) 1.9
Pfizer 651.25 671.80
(-) 3.1
Ranbaxy Laboratories 434.35 445.75
(-) 2.6
Sun Pharmaceutical Industries 1,318.45
1,227.00 7.4
.
BSE Healthcare Index 3825.95 3928.78
(-) 2.6
Nifty 4771.60 5223.50
(-) 8.6
Sensex 15975.52 17578.52
(-) 9.1


K.Karthik Raja
www.kences1.blogspot.com