Shares of these 4 pharma companies namely - Glenmark Pharma, Gland Pharma, Biocon and Laurus Labs have zoomed up to 79 per cent since the start of the March 2025 - thus outperforming the benchmark Nifty and the sectoral index by a wide margin, in spite of the US pharma tariff-related uncertainties.
In comparison, the NSE Nifty 50 index has gained 15.7 per cent, and the Nifty Pharma index has surged 15 per cent in the same period.
Following the sharp rally in the last five months, technical charts now show that these 4 pharma stocks are trading in an overbought zone as per the momentum oscillator - Relative Strength Index (RSI) - which quotes above 70 levels.
Technically, the 14-day RSI indicator helps in identifying overbought and oversold conditions in the stock market, based on the speed and quantum of price change in the last 14 trading sessions. The RSI indicator is plotted on a scale of 0 - 100, with readings above 70 indicating overbought condition, and a reading below 30 as oversold.
ALSO READ | Glenmark, Laurus Lab: Will Trump's 200% tariff threat derail pharma stocks? Having said that, typically stocks trading in an overbought zone tend to correct or consolidate for the RSI to cool-down. However, it’s not necessary that the stock immediately falls after entering the overbought zone; other key technical indicators also play a crucial part in determining the likely stock trend.
On Tuesday thus far, shares of these 4 pharma stocks were seen trading on a tepid note amid some profit-taking, declining around 1 per cent each. Is it time to book gains here or wait? Here's what the technical charts suggest.
Glenmark Pharma
Current Price: ₹2,161
Likely Target: ₹1,945
Downside Risk: 10%
Support: ₹2,094
Resistance: ₹2,225; ₹2,250
The 14-day RSI on
Glenmark Pharma daily chart stands at 75 levels. The RSI has recently seen a negative crossover, falling below the signal line, along with a similar negative crossover seen on the Stochastic Slow indicator. The Moving Average Convergence-Divergence (MACD) indicator is also showing signs of convergence.
However, the price chart shows that the near-term bias is likely to remain cautiously optimistic as long as the stock holds above the recent gap-up at ₹2,094 levels. Having said that, a break of the same can drag the stock towards the trend line support at ₹1,945 levels. Resistance for the stock can be anticipated around ₹2,225 - ₹2,250 zone.
 "Glenmark, Laurus: 4 pharma stocks gain up to 79% in 5 months; time to exit?")
