Pharma stocks outlook for the week – 04 to 08.01.2016
(Seen
trading rangebound with a positive bias)
( www.rupeedesk.in )
Stocks
of pharmaceutical companies are seen trading rangebound
with
a positive bias next week after recent gains. Some consolidation is
likely
in the pharma space.
This
week, the CNX Pharma Index rose 1.6%, outperforming Nifty 50
which
was up 1.3% on week. We expect the broader market to remain
firm
next week. While the positive sentiment in broader market will
support,
profit booking at higher levels may keep pharma stocks mostly
rangebound.
Cadila
Healthcare, which plunged 14% this week after the US Food and
Drug
Administration issued warning letter on its two units, is likely to
remain
under pressure in the near term.