Cipla, Glenmark: Time to accumulate pharma stocks on robust bullish trend?

The current volatility in the benchmark indices offer the ideal opportunity to accumulate pharma stocks around their respective supports

Despite the benchmark indices, the BSE Sensex and Nifty 50 dropping 2 per cent, Nifty Pharma index has set a new historic peak, surging over 2 per cent so far in the current month. 

Shares of Divi's Laboratories, Aurobindo Pharma and Divi's Laboratories continue to hold ground near their recent highs, with no signs of deterioration. 

Likewise, Cipla and Glenmark Pharmaceuticals, which have seen tremendous rally recent months, are experiencing accumulation at their immediate supports. Thus, will the current volatility in the benchmark indices offer the ideal opportunity to accumulate pharma stocks?  To comprehend this -

Here’s the technical outlook of Pharma stocks:- 

Nifty Pharm

Likely target:  16,o00

Upside potential: 5%

The stability over 15,000 has sparked fresh upsides in the Pharma Index, which is expected to scale higher uncharted territories in the coming sessions. Unless the index falls beneath 14,500-mark, the trend is likely to see added aggression on the upward side. The trend is headed to 16,000-level, battling all the sell-off in the overbought category. CLICK HERE FOR THE CHART

Aurobindo Pharma Ltd (AUROPHARMA)

Likely target:  Rs 1,000

Upside potential: 15%

Aurobindo Pharma has more than doubled since the start of the current year, implying a strong underlying trend that is able to withstand any selling pressure. The trend is steep and sharp, with every decline procuring more longs. The immediate support falls at Rs 800, as the technical indicator, Relative Strength Index (RSI) continues to stay overbought. The optimistic bias reflects a rally to Rs 1,000-level. CLICK HERE FOR THE CHART

Divi's Laboratories (DIVISLAB)

Likely target:  Rs 4,000

Upside potential: 9%

Shares of Divi's Laboratories hit a new 52-week high few sessions ago, steering more upside for the forthcoming sessions. This breakout, supported with aggressive volumes appears to withstand any sell-off on the course. With the support of Rs 3,600-mark, which needs to be adhered on the closing basis; the stock could easily hit Rs 4,000, as per technical setup. CLICK HERE FOR THE CHART

Cipla Ltd (CIPLA)

Likely target:  Rs 1,400

Upside potential: 14%

Shares of Cipla have crossed the major hurdle of Rs 1,200-mark, portraying a fresh upward bias in the coming months. The counter is headed to Rs 1,400-mark, possessing a robust chart structure on the daily chart. In addition, the “Golden Cross” breakout shall fuel firm bullish bias, once the counter sustains over the Rs 1,200.Support for the stock exists at Rs 1,100. CLICK HERE FOR THE CHART

Glenmark Pharmaceuticals (GLENMARK)

Likely target:  Rs 900

Upside potential: 15%

The longer-medium term outlook has turned extremely bullish for Glenmark Pharmaceuticals, following the breakout of “Inverse Head and Shoulder” on the monthly chart. Immediate support falls at Rs 700, with the price action hinting a rally to Rs 1,000-mark. CLICK HERE FOR THE CHART