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Sunday, June 8, 2008

Pharma Stocks Outlook: Seen as defensive bet in volatile mkt



Shares of pharmaceutical companies are seen up next week on
likely defensive buying in a volatile market.
This week too, Bombay Stock Exchange Healthcare index fell 2.3% as
compared with benchmark indices Sensex and Nifty that fell 5%. This
trend is seen continuing next week too.
Ranbaxy shares looks strong among the lot, with initial resistance
seen at 542 rupees and then at 585 rupees.
In the mid-cap segment, Divi's Laboratories is seen in focus next
week after it details its Jan-Mar earnings Saturday.
Divi's Laboratories' shares look strong on monthly charts but
weekly
charts are not showing any direction.
Divi's shares have resistance at 1,575 rupees and at 1,725 rupees.
It has support at 1,422 rupees.
Dr Reddy's Laboratories and Sun Pharma are attractive long-term
buys, but for the week, the charts are not giving any indications.
Dr Reddy's has resistance at 728 rupees and support at 660 rupees
while Sun Pharma has resistance at 1,485 rupees and support at 1,341
rupees.
Cipla was range-bound with resistance at 220 rupees and support at
205 rupees.
Fundamentally, Cipla and Glenmark looks overpriced and hence are
not recommended for buying,.
However, Glenmark continues to look attractive on charts with
resistance at 700 rupees and then at 750 rupees.
.
Closing share prices of leading pharmaceutical companies
yesterday, in rupees, on National Stock Exchange, versus a week ago:
.
Company Jun 6 May 30 %
Change
.
Cadila Healthcare 295.25 297.00
(-) 0.6
Cipla 207.85 212.10
(-) 2.0
Dr Reddy's Laboratories 696.25 714.15
(-) 2.5
GlaxoSmithKline Pharmaceuticals 1,091.80 1,139.25
(-) 4.2
Pfizer 597.35 621.90
(-) 3.9
Ranbaxy Laboratories 506.90 528.30
(-) 4.0
Sun Pharmaceutical Industries 1,423.80
1,402.70 1.5
.
BSE Healthcare Index 4296.01 4395.99
(-) 2.3
Nifty 4627.80 4870.10
(-) 5.0
Sensex 15572.18 16415.57
(-) 5.1


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