Pharma Sector Analysis – K Karthik Raja Rupeedesk Share Market Training -14.03.2025
Pharma Sector Analysis – K Karthik Raja Rupeedesk Share Market Training -14.03.2025
Pharma Sector Analysis – K Karthik Raja Rupeedesk Share Market Training -14.03.2025
Pharma Sector Analysis – 14.03.2025
K Karthik Raja (Market Educator & Technical Analyst)
MCA | MBA | M.Com | MSc Psychology | PGJMC | CST | MDAT | CFA Pursuant Key Factors Affecting the Pharma Index
- Regulatory policies – Government pricing regulations and approvals impact margins.
- USFDA approvals – Indian pharma companies rely on exports, and approvals play a crucial role.
- Currency fluctuations – A strong dollar benefits exporters, while a weak rupee increases costs.
- Raw material costs – API (Active Pharmaceutical Ingredients) price fluctuations impact profitability.
- Global demand – Demand for generics, specialty drugs, and biotech investments affect growth.
Key Watch: Support & Resistance Levels
Support levels:
- 20,386 (current level)
- 15,829 (200-day moving average)
Resistance levels:
- 21,313 (50-day moving average)
- 24,000 (psychological level)
Upcoming Events
- Quarterly earnings – Pharma companies' revenue from exports and domestic markets.
- USFDA inspections – Any major approvals or rejections could impact stocks.
- Budget announcements – Government healthcare spending and pharma incentives.
- Global health trends – Demand for generic drugs and vaccine developments.
Volume Analysis
- Low volume suggests weak buying interest at higher levels.
- Institutional selling has led to recent corrections.
- Volume confirmation needed near support levels for a rebound.
Dow Theory Chart Analysis & Observations
- Primary trend: Bullish (higher highs and higher lows).
- Short-term trend: Corrective (pullback phase).
- Long-term trend: Bullish if 15,829 holds.
Stocks to Watch
- Sun Pharma – Strong pipeline and specialty drug expansion.
- Dr. Reddy’s – Key approvals in the US generic market.
- Cipla – Respiratory and chronic segment growth.
- Divi’s Labs – API export demand and global contracts.
- Biocon – Biologics and biosimilars expansion.
Market Insights
Short-term view: Bearish to neutral, as the index consolidates near key levels.
Long-term view: Bullish if the support at 15,829 holds and demand for pharma products continues to rise.
Final Takeaway
- Pharma sector remains in a long-term uptrend despite short-term corrections.
- USFDA developments and global demand will be key drivers.
- Watch for a bounce from 20,386 or deeper support at 15,829.
Trade Setups
Breakout Strategy (Bullish)
- Buy above 21,313 with a target of 24,000+.
- Look for increased volume and RSI recovery.
Breakdown Strategy (Bearish)
- Sell below 20,386, targeting 15,829.
- MACD and RSI confirmation needed for further downside.
Disclaimer: This analysis is for educational purposes only. Please conduct your own research before making investment decisions.
Online Stock Market Traning : Whatsapp : 9841986753
One to One Share Market Training : Whatsapp : 9841986753
RUPEEDESK SHARES
Rupeedesk Shares| Share Market Training | Intraday Training | Wealth creation
Stock Market Training for beginners,Technical Analysis on Equity,Commodity,Forex Market,Learn Indian Equity Share Market Share Market Trading Basics: Fundamentals Of Share Market Trading training, Stock Market Basics - Share Market Trading Basics,Share Market Trading Questions/Answers/Faq about Share Market derivatives,rupeedesk,learn and earn share Equity,Commodity and currency market traded in NSE,MCX,NCDEX And MCXSX- Rupeedesk.Contact: 9094047040/9841986753/ 044-24333577, www.rupeedesk.in)
