Buy BSE Healthcare index (Target: 1900)

Aug 25, 2018

BSE Healthcare Index has broken resistance of both its long and short term ranges. It is now on an uptrend and provides opportunity to take accelerated profits.

The first target is 18000, which comes from the starting difference between the resistance and support of the short term range (~2500). Having broken the resistance at 15400, we can now expect it to trend upwards upward towards 18000 (15.4k + 2.5k).

The long term target is 19000, as a result of breaking the long term resistance at 14800 (plus the starting difference between the resistance and support of the long term range ~ 4200).

Note that the long term target is also close to the all time highs the index reached in 2015. I expect it to settle into a range after reaching this price.

Good Luck!

Aug 25, 2018

Note

The initial target should actually be 16800, the starting point of the long term range and up 50% of the long term range difference (4200) from the initial resistance break point at 14800.

Indian investors looking to take advantage can buy the Reliance Pharma mutual fund which closely tracks the index.

Sep 6, 2018

Note

The trade has been doing extremely well and is halfway through to the first target of 16800.

In the short run, the trade is also supported by fundamental factors. The rupee has weakened recently and the outlook for it isn't great. Indian pharma sector, which is primarily driven by exports, gains as the rupee weakens further.

The log run target still remains 19000, so still plenty of upside for investors looking to join in.

Good luck!