Thyrocare, Dr Lal PathLabs: Healthcare stocks can rally more, charts show

A new all time high shows bullish sentiment is here to stay in these stocks.

Shares of healthcare services companies traded firm on Wednesday on the expectation of strong earnings in the July-September quarter (Q2FY21). Thyrocare Technologies, Metropolis Healthcare, and Dr. Lal PathLabs hit their respective record highs and were up 9 per cent to 17 per cent on the BSE in intra-day trade. In comparison, the S&P BSE Sensex traded 0.79 per cent higher at 39,887 levels in the afternoon deals. READ MORE

Is the rally sustainable? Here's what charts indicate.

Dr. Lal PathLabs Ltd (LALPATHLAB): As the counter crossed the resistance of Rs 2,030 to Rs 2,050 levels, the upside breakout has seen a sharp intraday rally toward Rs 2,200 on Wednesday. The sentiment has turned highly bullish with a positive bias towards Rs 2,500 levels. The weekly chart clearly indicates a strong buying and accumulation occurred around Rs 1,800 levels. Going forward, if Relative Strength Index (RSI) crossed 68 value decisively, the price may see upside momentum in the overbought region. CLICK HERE FOR THE CHART
 
Metropolis Healthcare Ltd (METROPOLIS):  The counter managed to climb the resistance of Rs 2,040 levels and eventually hit a new all-time high of Rs 2,120. This move has commenced a fresh buying momentum, indicating a rally in the direction of Rs 2,250 levels. Till the counter defends the sentimental support of Rs 2,000, the upside bias should prevail firmly. The stock is gradually rising with a support of 50-day moving average (DMA), currently placed at Rs 1,769 levels, as per the daily chart. CLICK HERE FOR THE CHART
 
Thyrocare Technologies Ltd (THYROCARE): This counter has doubled in just three months, climbing to an all-time high of Rs 1,037 levels. Till the price trades above Rs 870 levels, the medium term outlook stays highly bullish with a rally heading towards the direction of Rs 1,500 levels. The recent surge or reversal was seen near the 50-DMA. This suggests that a strong underneath momentum helped this counter to excel. CLICK HERE FOR THE CHART