As Covid-19 cases rise in India; should you keep pharma stocks on radar?

Barring Dr Lal Pathlabs, the other four healthcare related stocks listed below seem to be trapped in a range for now, charts suggest.

India has witnessed a notable rise in new Covid-19 cases since late December 2023. On Monday the country reported 636 new Covid-19 cases, taking the nation-wide active case tally to 4,394.

Further, Karnataka with 229 fresh cases reported on January 01, became the second state after Kerala to have over 1,000 active cases.

So far, the World Health Organisation has maintained its stance on the new JN.1 Covid-19 sub-variant as a 'Variant of interest' (variants that are less effectively neutralised in labs by antibodies from infection or vaccination) as against 'variant of concern' which potentially spread rapidly.

Meanwhile, several states in India have issued advisories asking the citizens to practice respiratory hygiene and urged people to wear masks, especially in crowded public places.

Against this backdrop, should you be interest in adding healthcare related stocks to your portfolio at current levels? 

Here are the key levels to watch out for on select stocks.

Apollo Hospitals

Current Price: Rs 5,769

Resistance: Rs 5,850

Support: Rs 5,200

Apollo Hospitals has been trading with a positive bias, after it broke above its downward slanting trend line resistance on the daily scale. The chart suggests that the bias is likely to remain favourable as long as the stock trades above Rs 5,200 levels. 

On the upside, the stock needs to break and close above Rs 5,785 for the up move to gain momentum. Till such time, the stock may broadly range between Rs 5,580 - Rs 5,200 levels. CLICK HERE FOR THE CHART

Fortis Healthcare

Current Price: Rs 434

Support: Rs 429; Rs 422; Rs 414

The stock is trading in unchartered territory, with a favourable bias on multiple time-frames. The daily chart suggests that the bias is likely to remain positive as long as the stock trades above Rs 429.

Similarly, the weekly and the monthly charts suggest that the overall bias will remain favourable as long as the stock sustains above Rs 422 and Rs 414. On the upside, the stock could potentially rally to Rs 455 - Rs 465 range. CLICK HERE FOR THE CHART

Dr Lal Pathlabs

Current Price: Rs 2,561

Support: Rs 2,505

Upside potential: 17%

Shares of Dr Lal Pathlabs seem to be in a rising channel on the weekly scale, the stock taking consistent support around its 20-WMA (Weekly Moving Average), placed at Rs 2,505.

On the upside, the stock could potentially rise and test the higher-end of the channel, which suggests an upside target of around Rs 3,000. CLICK HERE FOR THE CHART

Aster DM Healthcare

Current Price: Rs 410

Resistance: Rs 412 - Rs 420

Support: Rs 400; Rs 380 - Rs 388

Aster DM Healthcare has been trading sideways since December. The price-to-moving average action remains favourable for the stock. Presently, the stock seems to be in a congestion zone, with immediate support seen at Rs 400 - its 20-DMA (Daily Moving Average) and hurdle at Rs 412 - the higher-end of the Bollinger Bands on the daily charts.

Key momentum oscillators are in divergent mode, hence one would need to wait and watch for the price action to unfold in order to gauge the trend. On the upside, the stock needs to break and sustain above Rs 412 - Rs 420 resistance zone for a fresh rally to emerge.

Meanwhile, on the downside, below its 20-DMA support for the stock is seen in the Rs 380 - Rs 388 zone. CLICK HERE FOR THE CHART

Metropolis Healthcare

Current Price: Rs 1,709

Support: Rs 1,660

Metropolis Healthcare has been a clear underperformer in the last two calendar years, having delivered a net loss of over 50 per cent during the period. Even as select key momentum oscillators have turned favourable on the long-term charts, the overall bias is likely to remain tepid as long as the stock remains below Rs 1,900.

Meanwhile, in the near-term the stock has near support at Rs 1,660, and may attempt to reach the anticipated resistance area on the upside. CLICK HERE FOR THE CHART