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The US president Donald Trump has threatened potential 200 per cent tariffs on pharma imports. As per reports, Trump said he plans to impose tariffs on imported pharmaceuticals, with medicine tariffs potentially reaching 200 per cent. However, he said drug-makers would be given about a year "to get their act together". In the Indian stock markets, pharma-related shares have rallied smartly over the last three months despite the US tariff threat. The Nifty Pharma index surged nearly 16 per cent from its low of 19,121 hit on April 7, 2025. In the same period, the NSE Nifty 50 index has surged 17.4 per cent from its low. Among individual stocks - Laurus Labs and Gland Pharma have rallied around 50 per cent from the respective April 7 lows. Another 8 pharma shares including the likes of Divi's Laboratories, Natco Pharma, Glenmark Pharma, Dr. Reddy's Laboratories, Ipca Laboratories, Abbott India, Zydus Lifesciences and Biocon have gained in the range of 20 - 40 per cent. Given the recent gains in pharma shares, will Trump's 200 per cent tariff threat derail the rally? Here's what the technical charts suggest. ALSO READ | ITC vs HUL vs Dabur: Which is the best bet among these FMCG major shares?
Nifty Pharma
Current Level: 22,255 Likely Target: 23,500 / 21,300 Upside Potential: 5.6% Downside Risk: 4.3% Support: 21,775 Resistance: 22,815 The Nifty Pharma index has given a breakout out on the trend line indicator on July 3. As per the daily chart, the near-term bias for the Pharma index is likely to remain positive as long as the index holds above 21,775 levels. However, the weekly chart shows presence of an overhead resistance around 22,815 levels. Thus the overall bias may remain tepid as long as the index remains in the 21,775 - 22,815 range. A breakout on the upside can potentially spurt to 23,500 levels; whereas a breakout on the downside could see the index drift back to 21,300 levels.
Nity Pharma index
