Sector Spotlight: Healthcare & pharma stocks in focus - Analyst recommends 4 stocks to buy for top gains
Healthcare and pharmaceuticals companies were in focus on Wednesday even as the stock markets ended negatively.
Healthcare and pharmaceuticals companies were in focus on Wednesday even as the stock markets ended negatively.
Both BSE Sensex and Nifty50 opened marginally lower from the last closing on Tuesday.
While the former was trading at 57,806.49 -90.99 -0.16%, down by over 90 points or 0.16 per cent, the latter was trading up 19 points or 0.1 per cent at 17,213.60.
Among the sectoral Indices, Nifty Pharma and Nifty Healthcare Index were the top gainers and were up 1.7 per cent and 1.9 per cent and trading at 14,072.90 and 8,865.05, respectively.
Out of the 15 indices, 4 were in the green while remaining 11 were in the red at the end of the trading session.
Technical Analyst Nilesh Jain was bullish on four stocks – all from the Nifty Healthcare Index. In the 20-share index, 18 stocks advanced while two declined. The top performers were Laurus Labs, Sun Pharmaceutical Industries Limited and Torrent Pharmaceuticals Limited which were up 4 per cent, 2.6 per cent and 2.1 per cent respectively.
Meanwhile, the losers were Star Pharma Science Limited and Pfizer Limited. The shares were down by 0.2 per cent and 0.04 per cent respectively.
Jain, who is Assistant Vice President (AVP), Equity Research Technical and Derivatives at Centrum Broking recommends four stocks for gains.
Laurus Labs: Buy| LTP: Rs 548| Target: Rs 640| Stop Loss: Rs 510| Upside 16%
Jian said that the stock has emerged from a breakout of 200-Day Moving Average at levels of 545. The stock was also trading with good volumes on Wednesday, he said. He recommended a buy on dip and also at current levels. He has a short term view on this.
Dr Lal Path Labs : Buy| LTP: Rs 3665| Target: Rs 3900| Stop Loss: Rs 3500| Upside 6-7%
Another stock picked by him was Dr Lal Path Labs which has seen a triple bottom top and is now seeing a trend reversal. It has been making higher tops higher bottoms from the level of RS 3300. He sees a target price between Rs 3800 and Rs 3900.
IPCA Lab: Buy| LTP: Rs 2109| Target: Rs 2400| Stop Loss: below Rs 2000| Upside 13%
The AVP picked IPCA Laboratories Limited as his third pick. This stock has taken support from a double bottom formation at Rs 1940 over the past 6-8 months. It is also on the verge of breaking out from its 200-DMA. He expects a trend reversal for an upside of Rs 200-300.
Apollo Hospitals: Buy| LTP: Rs 4985| Target: Rs 5300| Stop Loss: Rs 4700| Upside 7%
He recommends Apollo Hospitals Enterprise Limited for buying. This stock has been taking support from its rising trendline. It is also witnessing a breakout from the sideways consolidations that has been happening over the last 8-10 trading sessions. It was trading with good volumes, as well, he further said. The RSI indicator is also indicating bottoming out of the oversold position.
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