Last week Indian Equity Markets saw very volatile movements. Both investors as well as traders are in a state of confusion as it was quite a broad based selling spread across many sectors.
Today we are going to do a study and discuss about Nifty Pharma Index.
When we do Technical Analysis of any Index, specifically any sectoral Index; first thing we should do is to identify the trend of that particular sector.
If the index is showing strength technically then we can study charts of the individual stock from the same sector and we can find good buying/investing options in that particular sector.
Nifty Pharma Index witnessed selling pressure from the beginning of the week and it made low of 11280 on friday morning i.e. 19th March 2021. From thereon we witnessed strong buying taking the Index upwards and closing the day and week at 11667. Nifty Pharma Index closed 1.33% up on daily basis (from previous day) and on weekly basis it closed down 4.24%.
Last week Indian Equity Markets saw very volatile movements. Both investors as well as traders are in a state of confusion as it was quite a broad based selling spread across many sectors.
On daily chart Nifty Pharma index has formed a Bullish Piercing Line Candlestick Pattern. It has managed to close at 200 Days Simple Moving Average placed at 11665. On Daily Chart RSI is at 35.73 levels not showing weakness and we can see Positive Divergence which clearly indicates strength is coming back. Slow Stochastic is currently at 16.04, which is also showing Positive Momentum Building in the index.
The index has taken support at the Rising Trend Line as shown in both the Daily and Weekly charts.
Now if we analyze the Weekly Chart, it has taken Support of 50 Week’s Moving Average along with Rising Trend Line support. RSI is taking support at rising trend line as shown in the chart.
After studying the index we are at conclusion that Nifty Pharma Index has taken Support and it should see some buying from current levels 11667 till 12360 – 12450 in next 2- 4 weeks.
Stop Loss would be the low made on Friday i.e. 11280.
One can invest in Individual Stocks from Pharma sector from 2 – 4 weeks time horizon and potential gains can be upto 4% – 8%.
One can find good Buying Opportunities in Dr Reddy’s Laboratories, Divis Laboratories, Morepen Laboratories , Biocon Ltd, etc.
Mr. Digvijay, Co-Founder & Technical Analyst, Arthvidya Wealth Mantra
8484036329 / 79 / 87
www.arthvidya.in / info.arthvidya@gmail.com
Please like our FaceBook Page: https://www.facebook.com/Arthvidya.WealthMantra
Subscribe to our YouTube Channel at :https://studio.youtube.com/channel/UCU4CTekZ6ZAO_y7HNQ9XiYA
Subscribe to our Telegram Channel at:http://t.me/arthvidya"
Disclaimer: This article is intended to be used for information and education purposes only. It is very important to do your own analysis/study before making any investment decision based on your own personal circumstances. We are in no way related to the companies mentioned and discussed in any of our articles and we are not paid by any of these companies in any way.
Investment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equities, Derivatives, Commodity and Currency can be substantial.
RAVIRAJ
I liked the analysis however pls elaborate on iol chem & pharmaceutical stock.