Some of the popular pharma stocks including Cipla Ltd, Glenmark Pharmaceuticals Ltd and Lupine Ltd are likely to remain under the radar of traders in today’s session. Here’s what Laxmikant Shukla, technical research analyst at Yes Securities, said about these stocks ahead of Thursday’s trading session:
Cipla Sell | Target price: Rs 1,360 Stop loss: Rs 1,570
Cipla has been in a downtrend for some time now, trading in a tight range between Rs 1,615 and Rs 1,540. However, the stock has broken below the lower end of this range, with selling volumes also decreasing. Furthermore, the RSI is below its key levels, indicating more bearish momentum. The share price action featuring lower highs and lower lows on the daily chart reinforces this bearish outlook. Given this bearish sentiment, a short position in Cipla can be considered below Rs 1,500 levels. A stop-loss order can be set at Rs 1,570 to limit potential losses, while the target price for this short position is Rs 1,360.
Glenmark Pharmaceuticals Range-Bound | Resistance: Rs 1,630 | Support: Rs 1,475
Glenmark Pharma recently experienced break-even after breaking below the neckline of the double top pattern. It is now approaching the swing low of August 24. Technical indicators are mixed with the bearish RSI suggesting potential downside pressure, yet the point of polarity provides strong support, indicating a potential pullback. This creates some uncertainty over the near-term direction of the stock. However, there is solid support in the range of Rs 1,475-1,450. If this support holds, a short-term rally towards Rs 1,630-1,650 is possible, although significant upside momentum may be limited in the near term.
Lupine Sell | Target price: Rs 1,850 Stop loss: Rs 2,150
On the daily time frame, Lupine has broken out of a descending triangle pattern, indicating a negative trend. Sellers appear bullishly aggressive below Rs 2,050 levels. The price is trading below the key SMA, indicating weakness. Additionally, the MACD line is in the negative zone, which strengthens selling interest. If there is a pullback towards Rs 2,050, a sell position is recommended for Lupine, targeting Rs 1,850 with a stop loss at Rs 2,150 on a closing basis.
Disclaimer: This information is for informational purposes only and should not be construed as investment advice. It is recommended to consult a financial advisor before making investment decisions.