Dr Reddy's Labs, Cipla, Glenmark Pharma: Trading Strategies for these buzzing pharma stocks

Domestic stock indices on Thursday rebounded sharply from day's low to post decent gains. The BSE Sensex advanced 358.79 points, or 0.51 per cent, to settle at 70,865.10. The NSE Nifty jumped 104.90 points, or 0.50 per cent, to end the day at 21,255.05. A few pharma stocks namely Cipla Ltd, Glenmark Pharmaceuticals Ltd and Dr Reddy's Laboratories Ltd could be on traders’ radar today. Here is what Avdhut Bagkar, Derivatives & Technical Analyst at StoxBox has to say on these stocks ahead of Friday's trading session:

Cipla | Buy | Target Price: Rs 1,400 | Stop Loss: Rs 1,212
Cipla's price action is suggesting a positive bias, as the stock continues to see accumulation at the support of 100-simple moving average (SMA).The level of Rs 1,260 appears to be a major breakout mark, which needs to be taken off with aggressive volumes. When that happens, the resulting rally could push the stock towards the Rs 1,400 level.  The 100-SMA is placed at Rs 1,212 for Cipla, serving as a key bolstering level.

Glenmark Pharmaceuticals | Accumulate | Target Price: Rs 900
Once Glenmark Pharma breaches the Rs 835 level on a closing basis, the resulting breakout rally may help it move towards the Rs 900-mark. The underlying bias remains bullish, as the counter managed to rebound strongly post a sell-off on Wednesday. The strength index, Relative Strength Index (RSI), reveals the stock may take support near the 50 value, building an accumulation range.

Dr Reddy's Laboratories | Caution | Resistance: Rs 5,700 | Support: Rs 5,200
Dr Reddy's Laboratories is hovering around its 100-SMA of Rs 5,610 in the recent sessions.Unless a decisive breakdown emerges, the price action may demonstrate a healthy trend. Any stability over the Rs 5,700 level could spark an upward trend, taking the stock to a new historic peak of Rs 6,000. A breach of Rs 5,400 could derail the upside bias, causing the stock to glide towards Rs 5,200.

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.

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