Stock Pick: 3 Pharma Stocks Meghana Malkan Is Bullish On In The Near Term

“So, generally speaking, unless we have some trigger that takes the market into a different zone, generally speaking, I see… Skilled moving in this range and so it is with Nifty Bank“The momentum indicates that we are in a sideways zone at the moment,” he says. Meghana Malkanmalkansview.com.

What are your thoughts on the market? Let us first talk about the benchmark indices, Nifty, Bank Nifty, the levels you have in mind and then a few words about the markets in general.
Meghana Malkan: Broadly speaking, let us talk about Nifty first. So, if we look at the key technical parameters like RSI, candlestick patterns, price and momentum, it seems that we are in a consolidation phase. So, when I look at the charts of Nifty, 24,550 to 24,600 looks like a broader support where we could move up, the range of consolidation and down, I think 23,900 is where we could be capped on the downside. So, broadly speaking, unless we have some trigger that takes the market into a different zone, broadly speaking, I see Nifty moving in this range and the same is the case with Bank Nifty. Momentum says that at the moment, we are broadly in the sideways zone. Are you looking at any specific sectors at the moment that should be paid attention to? How do you see or are you seeing the market at the moment?
Meghana Malkan: Broadly speaking, what we do is, when the market is slow, when the market is moving sideways, I think the only two sectors that tend to do well in this type of market are IT and pharma. So, broadly speaking, I’m looking at pharma stocks. I like them. LupineThe way the stock is doing shows that it has been making a good move. Over the past three weeks, we have seen bullish candlestick patterns. The momentum remains in the upper zone.

So Lupin looks good to me. It’s stopped right now, maybe a good range to buy is when it goes down, I think around 2000 seems to be a good support.

I would be a happy buyer when 2000 comes with the backing of 2000, something close to that. And yes, I would play until it hits the Bollinger Band.

So if you look at the Bollinger Band, the momentum is showing to the upside. The price is right now on the weekly charts marking the Bollinger Band. Therefore, I think that from a short to medium term perspective, Lupin could be a good buy. Besides Lupin, I am also considering Aurobindo Pharmacyagain, which is in a good momentum zone. Volumes have been working well in these stocks along with the price. And the next one I’m looking at, again, is the pharmaceutical sector Glenmark is one of three stocks I am currently following.

Since you spend so much time looking at medication charts, let me add a few. How about that? Piramal Pharmacywhich is also gradually growing by half a percentage point a day, 1% a day, approaching 190-something. Does that look good too? How do you read the charts?
Meghana Malkan: I am looking at the charts. Piramal Pharma is looking good. I like, again, the momentum, although the price is again touching the Bollinger band. So, what happens when the price moves in the bands is that you are basically getting into the momentum. You hold the stock until the price is in the band, which is good. And then what you do is you trail with the stop loss. So, kind of like when I said Aurobindo Pharma or Piramal Pharma, you can hold the stock with the trailing stop loss, which could be a very good positional buy option.

If you could look Stainless wind Also, in the last few days we have seen that it is moving as well. Today we are also continuing to see that upward movement. Is there anything interesting that you are observing here?
Meghana Malkan: So, it seems like Inox Wind has made a very good breakout above the 170 levels. Since 170, if you look at it, this week it has been making a great move, touching the Bollinger Band. Yes, I think it is a good stock to invest in. I would wait for a pullback. Right now, if I go in on the long side, it seems like my risk and reward may not fit. The risk seems to be high. But near 200, if it pulls back near 200, I think it is a very good consolidation buy.

Aarti IndustriesYou’ve heard the story. Now, what’s the story you imagine on the charts? Is a volumes crack coming? It’s an industry leader and also a F&O stock. So, whenever there’s something negative, people start punishing it. How do the charts look? Is it time to get in or not yet?
Meghana Malkan: It’s amazing to see how history fits exactly into the price movement. So when I look at the chart, when I’m looking at the weekly chart, the resistance was at the exact point. It’s at the 61% retracement of the uptrend that had occurred two years ago.

There was a beautiful divergence in the RSI band at that time, at that level, and the RSI was at 60. Volumes have been very dry in the last uptrend. So, that’s how it fits perfectly into the story. So, yeah, I think this was deserved. The divergence was very pronounced and in the right place. So this was coming. I see the downside again, when I put my retracements on the chart, I feel like it could go straight down.

I don’t see any respite before the 560 to 570 levels. Therefore, I think it has been falling like a knife, as if it were a falling knife. Therefore, there is no point in entering. 560 is a good support. There is an inherent weakness that has already crept into the stock. Therefore, I think it might take a while before it gets into another trend again, either bullish or bearish.

I would wait and watch. And if I was someone who is stuck in this stock, then I would look for an upside pullback from 570. If there was a pullback, I would look for an exit from there.