Stock market today: Nifty levels to watch; trading views on Dr Reddys Labs, Cipla & Zydus Life

Indian benchmark indices continued to settle lower on Thursday ahead of the holiday on Friday. However, global sentiments remain feeble, while valuations in the Indian markets continued to moderate. BSE Sensex dropped 200.85 points, or 0.27 per cent, to end the session at 73,828.91. On other hand, NSE's Nifty50 fell 73.30 points, or 0.33 per cent, to settle at 22,397.20 for the day.

Nifty formed a red candle on the daily charts, signaling selling pressure. Over the past week, the index has been consolidating within the 22,300–23,700 range, said Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates. "It is encountering resistance near the bearish gap of 22,668–22,720. As long as the index holds above 22,300, a pullback towards 22,600-22,700 remains possible. However, if Nifty breaches 22,300, the weakness could extend towards the 22,000 level," he said.

Some buzzing pharma stocks including Dr Reddys Laboratories Ltd, Zydus Lifesciences Ltd and Cipla Ltd are likely to remain under the spotlight of traders for the session today. Here is what Aashish Shetty, Research Analyst- Technical at Axis Securities has to about these stocks ahead of Monday's trading session:

Zydus Lifesciences | Caution | Support: Rs 650 | Resistance: Rs 1,030

Zydus Life has breached the critical Rs 910 level, a zone that previously attracted significant buying interest and fueled the rally to its all-time high. A closer analysis reveals the formation of a head-and-shoulders pattern, signaling potential weakness in the stock. This technical breakdown suggests the possibility of a decline toward the Rs 650 level. For bullish sentiment to return, the stock would need to decisively break above the Rs 1,030 mark, reaffirming investor confidence.

Cipla | Range-bound

Cipla has entered a phase of sideways consolidation after a decline of approximately 19.7 per cent from its all-time high, with support at Rs 1,366 and resistance at Rs 1,502. A decisive break and close below or above these levels would be required to establish a clear directional trend. Until then, the stock is likely to continue trading within this range.

Dr Reddy's Laboratories | Caution | Support: Rs 1,035 | Resistance: Rs 1,400

Dr Reddy's Labs has shown signs of weakness following the formation of a double top around the Rs 1,400 level. The stock is currently approaching a critical support level at Rs 1,035. A breach of this support could lead to further downside, with the potential to decline toward Rs 860. To shift market sentiment to bullish, the stock would need to stage a recovery and break above the Rs 1,260 level, signaling renewed strength.