Many pharma stocks are coming up from their multi weeks/months lows as traders/investors showing buying interest in some large and midcap pharma companies in current weak market. Here is a list of pharma stocks which are technically gaining strength on daily basis chart with RSI crossing 50 and 60 levels. But many of these stocks are still below there 200dma on both daily chart and weekly chart. So any big up move is still remote especially when pharma index and Nifty/Sensex are in a consolidating mode. But for short term current positive move can be utilized for short gains.
Many stocks like Cadila, Sequent, Jubilant, Astrazen, Sanofi, Abbotindia, Auropharma, Drreddy, Glaxo, Natcopharm, Polymed, Suven, Lalpathlab and NH are above RSI 60, which mean further up move possible if overall market supports. Lauralabs, Ajantpharm, Cupid, Torntpharm, Lupin, Solara and Jbchepharm are above RSI 55 – which too a positive sign when many other sectors still in deep red.
On a 52 week basis only very few managed to keep a positive gains in pharma sector like Solara, Iolcp, Hesterbio, Ipcalab, Divislab, Apollohosp, Lalpathlab and Abbotindia. Overall last one year was not good for pharma stocks.
In June 2019 quarter many pharma stocks reported better than expected sales and pat numbers but failed to gain investor attention due to overall weak economic condition and weak market sentiment. Stocks like Iolcp, Rpglife, Kopran, Morepenlab and Astrazen reported more than 200% standalone PAT gain in June 2019 on an year-on-year basis.
Jagsnpharm, Solara, Star, Indoco, Unichemlab and Ipcalab reported more than 100% Pat y-o-y gains and Pel, Guficbio, Torntpharm, Cupid, Lotuseye, Cipla, Drreddy, Alkem, Hikal, Amrutanjan and Granules reported 50% plus gains. Polymed, Suven, Auropharma, Caplipoint, Smslife, Syncom, Abbotindia, Jbchepharm, Bafnapham, Aplltd, Jubilant, Vensrem, Apollohosp and Indramedco reported more than 30% y-o-y standalone PAT growth and Glaxo, Sunpharma, Pfizer, Panaceabio, Thyrocare, Albertdavd, and Erir reported 15%+ gains.
Overall it was a good quarter for pharma companies but due to overall weak market sentiment it was not reflected in the stock prices. But if Nify and Sensex move up from current position then definitely this will reflect in pharma stocks because most other sectors reported weak numbers in June 2019 quarter.