Till Nifty holds below 23,700, weakness could extend towards 23,500, then 23,400 levels, while on the upside, hurdles can be seen at 23,800, then 23,900 zones.
India's CRDMO sector growth rebounded to 19% YoY in Q1FY27 versus just 9% YoY in the March 2026 quarter, marking the highest growth level since the December 2024 quarter, notes Jefferies.
Chandan Taparia of MOFSL recommends buying Divi's Laboratories, TVS Motors and Dixon Technologies, citing strong technical setups and improving momentum.
Chandan Taparia of Motilal Oswal Financial Services has recommended three stocks to buy today: Divi's Laboratories, MCX, and Eternal.
In the past month, Divi's Labs outperformed the market by soaring 25 per cent, as against a 1.2 per cent rise in the BSE Sensex.
Q1FY27 company results: Firms including Aarti Surfactants, Aditya Birla Lifestyle Brands, APL Apollo Tubes, and Utkarsh Small Finance Bank are also to release their April-June earnings today
The BSE Healthcare hit a new high of 51,108 on Friday, rallying 3.7% in July. The index has surged 22% since April 2026.
Among others, Manappuram Finance, Marico, Radico Khaitan, Redington, Welspun Corp, Laurus Labs and Sai Life Sciences also touched respective all-time highs in trade on Thursday.
Pharma stocks: RPG Life, Thyrocare, Hester Biosciences, Rubicon Research, IOL Chemicals, Emcure and Suven Life from the BSE Healthcare index rallied between 4% and 8% on Monday.
On the overall market set-up, Ajit Mishra, SVP - Research at Religare Broking reckons to maintain a 'Buy-on-dips' approach, with a preference for relatively stronger stocks across sectors.
As the largest pure-play API/CDMO, Divi's should continue benefiting from custom-synthesis order-book conversion and the structural China+1/BIOSECURE-linked tailwind, analysts believe.
In the March quarter, Divi's Laboratories reported net profit at ₹751 crore, as compared to ₹662 crore a year ago, up 13.4 per cent year-on-year (Y-o-Y)
Nifty outlook for today: Option data suggests a broader trading range in between 23,200 to 24,100 zones while an immediate range between 23,400 to 23,900 levels.
Amol Athawale of Kotak Securities believes that the short-term outlook for Nifty Healthcare remains uncertain and sentiment may turn negative in case the index falls below 13,500 levels.