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Tech view: Nifty Pharma is headed for a strong rally; watch for 9350 levels

In the last five sessions, the index has been hovering at 200-days moving average (DMA) located around 9230, as per daily chart. A major trigger for a bigger run stays at 9350 levels

Avdhut Bagkar  |  Mumbai 

Tech view: Nifty Pharma is headed for a strong rally; watch for 9350 levels

NIFTYPHARMA: The bigger picture on the chart reveals a consolidation in the range of 9050 – 8550 levels. The current price of 9200 clearly denotes breakout with immediate target levels of 9550 and 9700 levels. The technical indicator MACD (moving average convergence and divergence), is seeing a positive crossover. The rise above zero line further supports the breakout move.

In the last five sessions, the index has been hovering at 200-days moving average (DMA) located around 9230, as per daily chart. A major trigger for a bigger run stays at 9350 levels. Any move above this can see a strong rally.

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The immediate support is at 8911 levels, its 50 The same will converge with 100DMA, currently placed at 8992 if the index crosses 9350 levels. If so, then every correction will eventually witness buying momentum at respective moving averages.

Divis's Laboratories (Divislab) has risen 70 per cent in the last nine months. Though the stock has not been in the limelight off-late, Divi's Labs is the only stock that has hit new highs every quarter. The stock has actually tripled, delivering 300 per cent return in less than two years.

Technically, stock making 52-weeks high has always witnessed addition in volumes till technical indicators do not make negative crossovers. Immediate support stalls at Rs 1600 with trend heading towards Rs 1850 levels.

(Auropharma), on the other hand, is just Rs 35 shy of lifetime high Rs 826. It has gained nearly 40 per cent in the last nine months. The daily chart shows convergence of 50 with 100 indicating trend towards Rs 850 and Rs 880. The support comes at 740 levels.

First Published: Tue, March 19 2019. 11:17 IST
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