Ipca Labs, Lupin: Pharma stocks show healthy trend, bottom could be near

Whenever the Nifty pharma index has dipped below oversold territory on the Relative Strength Index (RSI), it has seen a stable rise.

Pharma stocks were trading with decent gains on Friday with select stocks rallying up to 19 per cent.

Here's a look at how hese stocks look on technical charts and the investment strategy one should adopt - 

NIFTY PHARMA: Lately, whenever the index has dipped below the oversold territory on Relative Strength Index (RSI), it has seen a stable rise. The index has either risen or traded above the oversold candle lows. This shows the emergence of buying momentum in an aggressive selling pressure. If this scenario holds for a couple of sessions, then an upside rally towards 7,200 levels could be expected. The current levels depict support around 6,400 levels, as per the daily chart. CLICK HERE FOR THE CHART

Dr. Reddy's Laboratories Ltd (DRREDDY): The daily chart shows a formation of “bullish spinning top” pattern and a decent positive close on Friday may develop a bullish underneath strength. That said, the resistance at Rs 2,800 level holds the selling pressure. The current formations have started indicating a stable outlook and this may change to a bullish sentiment above Rs 2,800 levels. The RSI is rising above the oversold condition - a positive sign as per the daily chart. CLICK HERE FOR THE CHART

Sun Pharmaceutical Industries Ltd (SUNPHARMA): This counter is witnessing buying strength in the range of Rs 350 to Rs 340 levels. Till this range is held, the upside momentum may be seen. The upside may see subsequent resistances at Rs 385 and Rs 402 levels. The RSI is trading well above the oversold condition and moving towards upward direction. CLICK HERE FOR THE CHART

Divi's Laboratories Ltd (DIVISLAB): A “double bottom” pattern can be seen on the daily chart. The reversal around Rs 1,620 levels may indicate a short-term bottom. The breakout is located at Rs 2,010 levels. If that gets conquered, then a rally towards Rs 2,120 and Rs 2,170 may be expected.  The volumes have remained above average, indicating an upward move. CLICK HERE FOR THE CHART

Lupin Ltd (LUPIN): The counter has ended in the postivie territory in the last five sessions. This suggests buying momentum is getting stronger on day-to-day basis.  A major rally is expected above Rs 700 levels. That said, the immediate resistance falls at Rs 680 levels. On the other hand, till this counter holds Rs 630 on closing basis, the positive bias may continue. CLICK HERE FOR THE CHART

Ipca Laboratories Ltd (IPCALAB): The Friday's session is witnessing a gap up opening with a strong upside rally of 10 per cent. The earlier gap down range of Rs 1,402 to Rs 1,380 levels has been filled with an effort to conquer the resistance of Rs 1,500. Going forward, a decisive close above the resistance may open a bullish rally. On the downside, the support remains at Rs 1,330 levels.  Till the counter trades above Rs 1,250 levels on closing basis, the positive bias may prevail, as per the daily chart. CLICK HERE FOR THE CHART