This structure looks like its an point of termination of its previous move in 5 waves ( 1st Leg down Wave A) in corrective structure
Now we can look for 2 options they are
01) it might turn down and retest its recent low or immediate low with low volume , one can position on reversal in sight
02) it might continue to move slow and make an impulse move...
Nifty Pharma has bottomed out and we can look out for some pharma stocks .
Below are the weightages of top 4 stocks in the index.
Sun Pharmaceutical Industries Ltd. 22.59 %
Dr. Reddy's Laboratories Ltd. 17.23 %
Cipla Ltd. 11.36 %
Divi's Laboratories Ltd. 11.15 %
This is almost at the verge of ending its move
this is due for one last range bond move , then its high likely will make an upward move
One can look for investing in Pharma scrip as SIP on dip or wait for correction to complete and buy on reversal
for next up side move
MOST OF THE PHARMA COMPANIES ARE SIGNALLING BUY AND THE RESULTS ARE ALSO SEEMS TO BE GOOD.
THE PHARMA NIFTY HAS H&S FORMATION WITH NECK LINE AT 7777.
AND, THERE IS A CUP & HANDLE FORMATION WITH NECK LINE AT 8352.
FOR INDEX TO MOVE UP, THE RESISTANCE AT 8062 HAS TO BE CROSSED.
FROM THE CHARTS 8160 SEEMS TO BE THE NEXT TARGET.
Massive divergence on Monthly. I have personally not seen before, but if this holds , we can be sure that bottom could be in place. pharma has seen 4 years of stressful selling. time to pause and reverse !!! will see soon.