GOLDEN RULES FOR TRADING

Pharma stocks outlook for the week – 04 to 08.01.2016 (Seen trading rangebound with a positive bias)

Pharma stocks outlook for the week – 04 to 08.01.2016
(Seen trading rangebound with a positive bias)

Stocks of pharmaceutical companies are seen trading rangebound
with a positive bias next week after recent gains. Some consolidation is
likely in the pharma space.

This week, the CNX Pharma Index rose 1.6%, outperforming Nifty 50
which was up 1.3% on week. We expect the broader market to remain
firm next week. While the positive sentiment in broader market will
support, profit booking at higher levels may keep pharma stocks mostly
rangebound.

Cadila Healthcare, which plunged 14% this week after the US Food and
Drug Administration issued warning letter on its two units, is likely to
remain under pressure in the near term.