Monthly Charts force us to take a step back and give us no choice but to identify the direction of the primary trends. We use these charts to put shorter-term trends into context and this exercise is particularly useful when the market is experiencing heightened volatility. Nifty Pharma has been a great winner for us longer-term, and despite our near-term view of caution on the sector, we continue to view its trend on an absolute and relative basis constructive. Its largest holding, Sun Pharma, has been unable to reclaim former support/resistance near 475 just yet, but if and when that does happen, it’ll be a major tailwind for the sector at large. This stock is one to watch in May as it attempts to confirm the start of a new uptrend by closing above 475.
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