Nifty Pharma – Triple Bottom - Will the rally finally begin?Pharma stocks have been beaten black and blue since a long time now.
This sector has shown almost no upside at all when other sectors have rallied turn by turn taking Nifty near 11000 levels.
I can see a Triple Bottom Formation here with increasing buying interest near a strong support area in Nifty Pharma NSE:CNXPHARMA . Many Pharma stocks like Lupin NSE:LUPIN and Dr. Reddy NSE:DRREDDY are near their 52 week lows.
A breakdown of these lows may lead to a fresh round of selling.
However, holding these levels can lead to a massive upside, so this looks like a good opportunity to buy pharma stocks with a small stop loss !
We may see a trend reversal from here in Pharma stocks especially as people search for opportunities to buy quality stocks available at cheap prices when banking stocks and Nifty in general have become very expensive.
Disclaimer: Views expressed here are my own, and should not be interpreted as an Investment Advice. Please consult your Financial Advisor for investments.
