Bet on these diagnostic stocks for up to 19% return as Covid-19 cases flare

Shares of diagnostics companies were in the spotlight on Monday in an otherwise feeble market as India reported its highest-ever daily tally of 1.03 lakh Covid-19 cases. According to the Union Health Ministry data, India recorded 1,03,558 coronavirus infections on Sunday, pushing the nationwide Covid tally to 1.25 crore.

Among individual stocks, Thyrocare Tech and Metropolis Healthcare rose over 4 per cent each, in intra-day deals, while Dr Lal PathLabs gained 3.9 per cent to hit a record high of Rs 2,924.85. In comparison, the benchmark S&P BSE Sensex was trading 2.6 per cent lower, at 11:30 AM. READ MORE

Here's how shares of diagnostic companies look on charts

Thyrocare Technologies Ltd (THYROCARE):

Likely target: Rs 1,140 - Rs 1,180 (after conquering Rs 990 levels)

Upside potential: 15.15% - 19.19%

This stock was on a decline since December 2020, breaching its 50-day moving average (DMA) and the 100-DMA in the process. Nevertheless, the counter has since managed to defend 200-DMA, placed at Rs 848 level. Now, as the stock crosses 50-DMA and 100-DMA upwards, it needs to conquer the resistance of Rs 990 levels. Only upon crossing this resistance, the counter may see a rally towards Rs 1,140 and Rs 1,180 levels. The closing basis support stays at Rs 952, which is its 100-DMA. CLICK HERE FOR THE CHART
 
Metropolis Healthcare Ltd (METROPOLIS):  

Likely target: Rs 2,500 -  Rs 2,700 (after conquering Rs 2,325)

Upside potential: 7.53% - 16.13%

After claiming the new 52-week high of Rs 2,348 levels, the counter is witnessing mild profit booking. That said, until the counter defends 200-DMA placed at Rs 1,875 mark, the medium-term outlook remains highly bullish. A major breakout is anticipated above the strong close of Rs 2,325 levels, as per the daily chart. When that occurs, the upside bias may see a rally towards Rs 2,500 to Rs 2,700 levels. The Moving Average Convergence Divergence (MACD) has crossed the zero line upward, indicating possible positive momentum, going ahead. CLICK HERE FOR THE CHART
 
Dr. Lal PathLabs Ltd (LALPATHLAB):

Likely target: Rs 3,100 - Rs 3,200

Upside potential: 7.64% - 11.11%

The counter is decisively moving higher with the support of 100-DMA, currently placed at Rs 2,335 levels. Although, the Relative Strength Index (RSI) has entered the overbought condition, which  triggers profit booking, until the MACD trades with a positive crossover, the upward momentum is expected to witness buying in corrective moves. The overall trend is heading towards Rs 3,100 and Rs 3,200 levels, as per the daily chart. CLICK HERE FOR THE CHART