Cipla, Cadila Healthcare, Glenmark Pharma: Technicals highlighted by Bonanza Portfolio

Vishal Wagh, Research Head at Bonanza Portfolio says that Nifty pharma has shown consistent outperformance to the major indices and the current pandemic environment is creating a large demand for the sector. He said that as per ranking based on its performance against the NIFTY and Nifty Pharma, Cadila, Glenmark, Cipla, Sun pharma, Divislab, Auropharma, Lupin and Dr Reddy will outperform in the sector whereas, Biocon, Alkem, APL and Granules may underperform.

Technical Analysis on Cadila Healthcare share price:

Vishal said that Cadila Healthcare had started the correction in 2017 from the top of Rs 560 and till the bottom of 2019 it has corrected more than 63% to Rs 206. From August 2019 a decent rally started and except for the sell-off in Feb and March 2020 it is consistently in a higher high higher low chart structure which is bullish. From Jan-2021 till the low of March, it has shown a healthy correction and now the market is witnessing a smart rally in this counter.

See Zee Business Live TV Streaming Below:

On all the time frames, Cadila Healthcare is outperforming the Nifty. On a daily basis, it is sustaining well above 20 and 50 EMA. At the same time, both moving averages are sloping upward and the difference between both of them is also increasing. All these indications are bullish for the stock. On the higher side, an all-time high of Rs 560 will be tested and a chance of stock moving in the uncharted territory is higher. On the lower side, major support is seen near Rs 478 levels. The strategy to utilize the trend is to buy on deep. For short-term traders, any deep till 510 should be utilized to accumulate. The stop loss should be below 474 levels, explain Wagh.

Technical Analysis on Cipla share price:

Vishal said that Cipla is currently all-time high and current sentiments are helping it to move further. On a weekly basis stock has cut all the major resistance and currently it is holding strongly above the recent high of Rs 874. On a daily, weekly and monthly basis, the stock is managed to outperform Nifty and Nifty pharma. Cipla is a stronger long term bet. On the loser side, the range of Rs 850 – Rs 874 will be a major support zone and on the higher side, it is uncharted territory sky is limit. Strategy in case of such stock is to buy and hold with trailing stop loss a per the appetite of investors.

Techmical Analysis on Glenmark Share price:

Glenmark Pharma made an all-time high in Aug-2015 at Rs 1275 and corrected till Rs 161 in the month of Mar-2020. In five and a half years, the stock has lost more than 87% from the top. In a matter of three months, it managed to multiple itself by more than 5.5 times at Rs 575 levels. Since then stock is in sideways correction in the range of Rs 440 – Rs 550. Last week it has broken the major range and given a longer-term breakout, explains Wagh.

On all time frames, Glenmark Pharma market is outperforming Nifty and Nifty Pharma. Moving forward, one can see the zone of Rs 440 – Rs 550 will become major support for the stock and on the higher side, Rs 700 – Rs 855 is targeted. The strategy should be buying on dips and hold for a longer term with stop loss below Rs 440.