When stocks of the same sector move together, then it represents the best opportunity. We have seen how it played out in Real Estate in March 2017, Tech Stocks in October 2017, Consumption in Nov 2017 and MNC Pharma in Feb 2018. Now it seems PHARMA is the new Fav sector of big money.
The first stock in this sector that broke out: IPCA Labs.
It was a turnaround move above 200 dma and well-defined resistance of 640 and it happened in Feb 2018. Now 6 months have passed and not much progress the stock has made but what has been commendable, despite chaos and volatility, the stock never went below the resistance and as long as the stock does that – one can be optimistic about the stock over next 4 months.
Source: Chartalert.com
All I can say about IPCA Labs –
Stay neutral. Be patient and allow your trade to mature as per your plan.
— Trading Composure (@TradingComposur) August 17, 2018
Now three more stocks have joined the list:
Sun Pharma Breakout
Source: Chartalert.com
Sun Pharma stock has broken out on weekly chart this week above 690 and the stock is now excellent buy around 610-620 band with a holding period of 9 months.
Torrent Pharma Breakout
Source: Chartalert.com
Torrent Pharma is now my Fav breakout stock. It was the best buy around 1700 and continues to be good buy on any declines. The stock is well positioned to surprise everyone over the next 6-9 months.
Lincoln Pharma Breakout
Source: Chartalert.com
Lincoln Pharma stock also has broken out on weekly chart and the stock now is buy on declines.
Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers