Pockets Of Pharma Healing

JC Parets
April 14, 2021

Over the past couple of weeks, we've noticed strength building in the Pharmaceuticals sector. The index has bounced off its support and is now attempting to resume its prior positive trend.

This resumption has come after a substantial pause and hence we thought we'd do a quick round-up of the stocks that are looking good at the moment.

Laurus Labs was one of the major gainers in the bull rally in 2020 following which a sideways move meant that the stock was dormant for almost six months! Last week the price broke above its resistance and the momentum seems to be alluding to strength in the weeks ahead too. This is more of a target update for those looking for the next levels of overhead zones.

Laurus Labs is bullish above the level of 350 with a target near 530.

Click on chart to enlarge view.

Another stock that has been on a tear has been IPCA Labs. See the theme here? Labs are doing well and outperforming the others in the same sector.

IPCA has been in a minor corrective mode and going by the recent move, it looks good for the next leg of the pharma rally. The price has moved past its consolidation close to 1,960 which will act as the risk management going forward level and is headed towards 2,530, the next target.

Making way for another lab is Lal Path Labs. The price has paused in the last trading session and has moved closer towards its risk management levels. Corrections can be used as buying opportunities as the Healthcare sector as a whole has been outperforming Pharma.

We are bullish above the level of 2,694 with a target near 3,630.

Thyrocare Technologies has moved past its overhead resistance at 1,010 in the past few days. With the indicator moving into bullish momentum territory, the sentiment is alluding to the building strength in this particular stock.

We are bullish above the level of 1,010 with a target near 1,380.

Next up is Solara which has been holding above its immediate support zone of 1,310. Although the price made a failed attempt at breaking out above this level earlier, with the strength building in Pharma, we could see a follow-through coming this time around.

We are bullish above the level of 1,310 with a target near 1,890.

These are the stocks that have been displaying strength in the Pharma sector. With rotation moving back into this sector, we may see more names join this list as the move progresses.

Thanks for reading and please let us know if you have any questions.

Allstarcharts Team

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