Dr Reddy's, Sun: Pharma stocks can crash up to 30% on Trump's 100% tariff

Indian pharma shares - Dr.Reddy's, Cipla, Sun, Lupin and Aurobindo Pharma stare at up to 30 downside risk hint technical charts as US President Donald Trump announces 100% tariff on pharma imports.

Shares of Indian pharmaceutical companies tumbled up to 4 per cent in early trade on Friday after the US President Donald Trump said will impose a 100 per cent tariff on branded and patented pharmaceutical drugs, starting October 1, 2025.  Among individual stocks - Natco Pharma, Laurus Labs, Abbott India were the top losers, down over 3 per cent each. The Nifty Pharma index tumbled 2 per cent at 21,500; while the NSE benchmark Nifty 50 slipped 0.4 per cent to 24,800 levels. 

Technical outlook on Indian Pharma stocks

  Technically, the Nifty Pharma index may dip towards the 100-Week Moving Average, which stands at 20,570 levels; below which a slide to 19,085 levels cannot be ruled out. Thus implying, a potential downside risk of 11.2 per cent from current levels.  On similar lines, prominent Indian pharma stocks such as Dr Reddy's Laboratories, Cipla, Sun Pharma, Lupin and Aurobindo Pharma can crash up to 30 per cent, in case these key support levels are violated, suggest technical charts.  

Dr Reddy's Laboratories

Current Price: ₹1,261  Likely Target: ₹1,035  Downside Risk: 17.9%  Support: ₹1,251; ₹1,238; ₹1,151  Resistance: ₹1,290; ₹1,320  Dr Reddy's stock has dropped below the short-term moving averages on the daily chart, and is seen testing support at the trend line indicator, which stands at ₹1,251. Below which, immediate support for the stock is visible at ₹1,238 in the form of the 200-Day Moving Average (200-DMA).   

 

  Break and sustained trade below the support zone shall open the doors for a likely fall towards the weekly trend line support, which stands at ₹1,151 levels; below which a crack to ₹1,035 cannot be ruled out. Resistance for the stock can be anticipated around ₹1,290 and ₹1,320 levels. 

Sun Pharma

Current Price: ₹1,573  Likely Target: ₹1,250  Downside Risk: 20.5%  Support: ₹1,550; ₹1,480; ₹1,404  Resistance: ₹1,605; ₹1,625; ₹1,644  Sun Pharma is likely to test the monthly trend line support which stands at ₹1,404 levels. The stock has been consistently holding above this technical indicator since December 2020. In case this support caves in, the stock can extend the fall towards ₹1,250 levels.   

 

  Interim support for the stock exists around ₹1,550 and ₹1,480 levels. The short-term bias at the counter is likely to be subdued as long as the stock trades below ₹1,644, with near resistance likely around ₹1,605 and ₹1,625 levels. 

Aurobindo Pharma

Current Price: ₹1,075  Likely Target: ₹750  Downside Risk: 30%  Support: ₹1,024; ₹860  Resistance: ₹1,125  Aurobindo Pharma stock was seen struggling around its 200-Day Moving Average in recent trading sessions. With today's fall, the stock has dropped back near its shorter-term moving averages, which hover around ₹1,074 levels.   

 

  On the monthly scale, the stock is seen trading close to its trend line support. A monthly close below ₹1,024, shall signal a phase of prolonged correction at the counter. On the downside, the stock may extend the fall towards the 100-Month Moving Average (100-MMA), which stands around ₹750, with interim support visible at ₹860 levels.  The overall bias at the counter is likely to remain negative as long as the stock quotes below the 100-DMA, which stands at ₹1,125. 

Cipla

Current Price: ₹1,482  Likely Target: ₹1,206  Downside Risk: 18.6%  Support: ₹1,430; ₹1,355; ₹1,290  Resistance: ₹1,512; ₹1,550; ₹1,574  Cipla is seen trading close to its 20-MMA, which stands at ₹1,498 - a monthly close below the same shall signal an end to a 28-month rally, which started in June 2023 post the breakout above the key long-term indicator.   

 

  As such, Cipla could then extend the fall towards ₹1,206, with interim support expected around ₹1,430, ₹1,355 and ₹1,290 levels. The short-term bias is likely to be bearish as long as the stock sustains below ₹1,574, with interim resistance seen at ₹1,512 and ₹1,550 levels. 

     

Lupin

Current Price: ₹1,929  Likely Target: ₹1,600  Downside Risk: 17.1%  Support: ₹1,838; ₹1,800; ₹1,750  Resistance: ₹1,957; ₹1,982; ₹2,050  Lupin had been broadly trading in the band of ₹1,850 - ₹2,100 for the last 32-weeks, since  mid-February 2025. The lower-end of the existing trading band coincides with the 100-WMA, which stands at ₹1,838. 

 

      In case the stock breaks on the downside, a crash to ₹1,600 levels cannot be ruled out. The stock may seek intermediate support around ₹1,800 and ₹1,750 levels. Overall sentiment at the counter is likely to remain tepid below ₹2,050 levels, with near resistance anticipated around ₹1,957 and ₹1,982 levels.