It was another session of selloff at Dalal Street as Indian markets continued to bleed on Wednesday on the back rising inflation, relentless FIIs selling and weak Q2 performance by India Inc. Indian benchmark indices have corrected 10 per cent from their 52-week highs. BSE Sensex crashed 985.23 points or 1.25 per cent, to end the session at 77,690.95. NSE's Nifty50 tumbled 324.40 points, or 1.36 per cent, to close at 23,559.05 for the day.
Some buzzing pharma stocks including Cipla Ltd, Glenmark Pharmaceuticals Ltd and Lupin Ltd are likely to remain under the spotlight of traders for the session today. Here is what Laxmikant Shukla, Technical Research Analyst at YES Securities has to say on 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, trading within a narrow range of Rs 1,615 to Rs 1,540. However, the stock has broken below the lower end of this range, accompanied by descent selling volume. Additionally, RSI is below its key levels, further indicating bearish momentum. The stock's price action, characterized by 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 the Rs 1,500 level. A stop-loss order at Rs 1,570 can be set 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 has recently experienced profit-taking after breaking down below the neckline of a double top pattern. It is now approaching the August 24th swing low. Technical indicators are mixed with a bearish RSI suggesting potential downside pressure, yet the point of polarity provides strong support, indicating a possible pullback. This creates some uncertainty in the stock’s near-term direction. However, there is solid support in the Rs 1,475-1,450 range. If this support holds, a short-term rebound to Rs 1,630-1,650 is possible, though significant upside momentum may be limited in the near term.
Lupin | Sell | Target Price: Rs 1,850 | Stop Loss: Rs 2,150
On the daily time frame, Lupin has broken down from a descending triangle pattern, signaling a negative trend. Sellers appear increasingly aggressive below the Rs 2,050 level. The price is trading below major SMAs, indicating weakness. Additionally, the MACD line is in negative territory, reinforcing selling interest. A sell position is recommended for Lupin if there is a pullback toward Rs 2,050, targeting Rs 1,850, with a stop loss at Rs 2,150 on a closing basis.