Glenmark, Laurus: 4 pharma stocks gain up to 79% in 5 months; time to exit?

The daily RSI, a key momentum indicator, shows that these 4 pharma stocks namely - Gland Pharma, Glenmark, Biocon and Laurus Labs are trading in the overbought territory; here's what to expect next.

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. 

 

 

Biocon

Current Price: ₹390  Likely Target: ₹370  Downside Risk: 5.1%  Support: ₹381  Resistance: ₹400; ₹405  Biocon stock is seen making higher-highs and higher-lows on the daily chart post the breakout in early May. The overbought condition on the chart could trigger some sort of consolidation for the stock in the near-term. As such, the stock may test its trend line support around ₹372 levels.  Near support for the stock is visible at ₹381 levels, while resistance can be anticipated around ₹400 and ₹405 levels for now. 

 

 

Laurus Labs

Current Price: ₹822  Likely Target: ₹742  Downside Risk: 9.7%  Support: ₹815; ₹777  Resistance: ₹834; ₹855  Laurus Labs stock has been trading in overbought territory as per the RSI indicator since the start of July month. Select indicators are showing some signs of tiredness, while the Stochastic Slow still holds steady.  As per the price action, break and sustained trade below ₹815 can trigger some sort of correction or a dip towards the trend line support, which stands at ₹777 levels; below which a crack towards ₹742 levels cannot be ruled out. 

 

  On the upside, the recent highs around ₹834 shall act as near-term resistance; above which a spurt towards ₹855 seems possible. 

Gland Pharma

Current Price: ₹1,983  Likely Target: ₹1,850  Downside Risk: 6.7%  Support: ₹1,948; ₹1,890  Resistance: ₹2,019; ₹2,095; ₹2,135  The key near-term support for Gland Pharma stock stands at ₹1,948 levels. Break and sustained trade below the same can pull down the stock to ₹1,850 levels, with interim support likely around ₹1,890. On the upside, the stock is seen facing resistance around its 200-Week Moving Average (200-WMA), which stands at 2,019 levels. The stock can potentially spurt to ₹2,095 and ₹2,135 levels in case of an upside breakout.