Apollo Hospitals, Thyrocare: Time to book profits in these stocks?

According to the revised policy, private hospitals will receive 25 per cent of the vaccines and can charge Rs 150 in overhead at max

Shares of hospitals and diagnostic services providers slid at the bourses on Tuesday amid declining Covid-19 cases and Prime Minister Narendra Modi's announcement of free Covid-19 vaccines for ages 18 and above, from June 21.

Among individual stocks, Thyrocare Technologies and Metropolis Healthcare fell over 3 per cent, each, in today's intra-day deals while Apollo Hospitals and Dr Lal Path Labs slipped 1.6 per cent and 1.24 per cent, respectively. Fortis Healthcare also fell 0.7 per cent in intra-day. In comparison, the benchmark S&P BSE Sensex was down 0.25 per cent, at 12:11 PM.

The shares of diagnostic services came under pressure as India's daily Covid-19 cases fell below 100,000 after 68 days. The country reported 86,498 new infections and 2,115 new deaths in the last 24 hours. 

Meanwhile, with the Centre revising its policy, vaccine ma­kers and private hospitals face a loss of revenue. According to the revised policy, now the Centre will procure the vaccines for ages 18 and above, and will provide those to the states. The private hospitals, however, have been allowed to continue to procure 25 per cent of the vaccines available although the Centre has capped the service charge at Rs 150 per shot they administer. READ MORE

Here's how these stocks look on the charts:

Apollo Hospitals Enterprise Ltd (APOLLOHOSP)

Likely target: Rs 3,150 – Rs 3,100

Downside potential: 4% and 5.50%

After conquering the Rs 3,200 mark, the counter has seen sideways movement, profit booking, and selling pressure at higher levels, as per the daily chart. While Apollo Hospital managed to hit the 3,400 mark, the upside bias does not seem likely. The Relative Strength Index (RSI) is observing resistance around 68 value, suggesting a hurdle. The current momentum shows a retest of the support of Rs 3,150 – Rs 3,100 levels. CLICK HERE FOR THE CHART

Fortis Healthcare Ltd (FORTIS)

Likely target:  Rs 225 - Rs 221

Downside potential: 4% - 6%

The counter is struggling to cross the hurdle of Rs 240 level decisively. If this struggle fails to materialize into a breakout, then the weakness may see a retesting of Rs 225 - Rs 221 levels. The Moving Average Convergence Divergence (MACD) has been trading in a negative crossover, indicating that the direction has low positive intensity. CLICK HERE FOR THE CHART
 
Dr. Lal Path Labs Ltd (LALPATHLAB)

Outlook: Awaits breakout above Rs 3,000

The next breakout for this counter is above Rs 3,000 levels, as per the daily chart. When that happens, the upside rally may see a surge towards Rs 3,200 levels. That said, if the counter fails to breakout and struggles to hold the support of Rs 2,850 levels, the downside may open for Rs 2,700 levels. CLICK HERE FOR THE CHART

Thyrocare Technologies Ltd (THYROCARE)

Oulook: Needs to cross Rs 1,150 levels for the next breakout

The current scenario indicates a sideways breakout above Rs 1,100 mark. However, the follow-up buying needs to emerge to confirm the signal. This move needs to scale Rs 1,150 mark to rally towards Rs 1,200 levels, as per the daily chart. The immediate support comes at Rs 1,075 and Rs 1,050 levels. CLICK HERE FOR THE CHART

Metropolis Healthcare Ltd (METROPOLIS)

Likely target: Rs 3,000

Upside potential: 4%

The breakout above Rs 2,650 indicates further bullish bias for the counter. The MACD is holding the up move with a positive crossover, indicating that the direction may stay in the upward side.  The overall trend is moving towards Rs 3,000 levels, which seems to be the next resistance mark. The volumes on the breakout seem to favour the upward move with strong interest of market participants. CLICK HERE FOR THE CHART