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Last Updated : Aug 12, 2020 12:15 PM IST | Source: Moneycontrol.com

D-Street Buzz: Pharma stocks under pressure; Lupin, Biocon, Divis Labs, Cipla shed 2% each

Lupin, Cadila Healthcare, Divis Laboratories and Biocon shed over 2 percent each while Sun Pharma and Aurobindo Pharma were down a percent.

A man reacts as he looks at a screen displaying the Sensex results outside the Bombay Stock Exchange building, Mumbai, March 12. REUTERS
A man reacts as he looks at a screen displaying the Sensex results outside the Bombay Stock Exchange building, Mumbai, March 12. REUTERS

The Indian stock market continues trading in the red but is off the day's low. At 11:57 hours, Sensex is down 77.12 points or 0.20% at 38329.89, and the Nifty down 26.60 points or 0.23% at 11295.90.

Among the sectors, the pharma index shed over a percent dragged by Lupin, Cadila Healthcare, Divis Laboratories and Biocon which shed over 2 percent each.

Shares of Dr Reddy's Labs was down almost 2 percent intraday on August 12. The company launched a generic version of Ciprodex Otic Suspension in the American market, following approval from the US Food and Drug Administration. It was trading at Rs 4,510.35, down Rs 85.10, or 1.85 percent. It has touched an intraday high of Rs 4,610.00 and an intraday low of Rs 4,485.

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The other losers included Sun Pharma which shed a percent followed by Aurobindo Pharma.

Vinay Rajani, Senior Technical and Derivative Analyst at HDFC Securities has a buy call on Sun Pharma with target price of Rs 600 per share. The stock has broken out from the last six session's price consolidation with rising volumes. It is placed above all important moving averages, indicating a bullish trend, he said.

Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities is of the veiw that Aurobindo Pharma has formed a strong price volume breakout pattern and the medium-term texture of the stock is vigorous. In addition, the short-term averages and SAR series indicate high chances of the further uptrend from current levels.

Fresh buying can be considered now and on dips if any between Rs 910-885 levels with a stop loss below Rs 840, he added.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
First Published on Aug 12, 2020 12:15 pm
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