Nifty 17464.1 (1.67%)
Sensex 58642.53 (1.75%)
Nifty Bank 37300 (1.86%)
Nifty IT 35916.55 (1.83%)
Nifty Financial Services 18274.6 (1.64%)
Adani Ports 758.20 (1.81%)
Asian Paints 3105.85 (2.49%)
Axis Bank 698.00 (1.60%)
B P C L 391.20 (0.88%)
Bajaj Auto 3330.00 (1.33%)
Bajaj Finance 7321.60 (3.08%)
Bajaj Finserv 17593.30 (2.83%)
Bharti Airtel 714.85 (2.29%)
Britannia Inds. 3573.45 (2.86%)
Cipla 897.35 (0.91%)
Coal India 150.90 (0.17%)
Divis Lab. 4602.00 (-0.49%)
Dr Reddys Labs 4575.00 (1.20%)
Eicher Motors 2510.25 (1.56%)
Grasim Inds 1718.60 (1.96%)
H D F C 2851.15 (1.19%)
HCL Technologies 1172.65 (2.00%)
HDFC Bank 1554.00 (1.85%)
HDFC Life Insur. 686.35 (-1.16%)
Hero Motocorp 2494.05 (1.31%)
Hind. Unilever 2338.00 (0.71%)
Hindalco Inds. 457.10 (3.30%)
I O C L 120.30 (-0.25%)
ICICI Bank 754.40 (2.69%)
IndusInd Bank 946.00 (2.09%)
Infosys 1753.95 (2.47%)
ITC 225.00 (1.97%)
JSW Steel 672.00 (1.72%)
Kotak Mah. Bank 1922.00 (-0.78%)
Larsen & Toubro 1828.15 (1.67%)
M & M 838.80 (1.56%)
Maruti Suzuki 7439.00 (3.51%)
Nestle India 19491.85 (0.76%)
NTPC 127.20 (1.48%)
O N G C 148.05 (1.47%)
Power Grid Corpn 204.85 (-0.46%)
Reliance Industr 2418.35 (1.53%)
SBI Life Insuran 1169.95 (0.93%)
Shree Cement 26108.05 (1.40%)
St Bk of India 491.70 (3.15%)
Sun Pharma.Inds. 757.45 (1.85%)
Tata Consumer 772.00 (1.49%)
Tata Motors 494.60 (2.66%)
Tata Steel 1172.95 (2.10%)
TCS 3629.50 (1.26%)
Tech Mahindra 1607.70 (1.97%)
Titan Company 2403.85 (0.98%)
UltraTech Cem. 7420.05 (1.65%)
UPL 726.15 (-0.11%)
Wipro 641.55 (1.45%)
This Pharma stock is the best defensive bet in a volatile market!
by 5paisa Research Team 10/11/2021

Slug - In this undercurrent and high volatility scenario, the pharma sector is one of the go-to sectors for traders.

The past few weeks have been hugely volatile for the Indian benchmark indices. The corporate results season is on a roll and a lot of stocks have been corrected from their recent highs. The continuous FII selling is creating a panic among the market participants. In this undercurrent and high volatility scenario, the pharma sector is one of the go-to sectors for traders.

So, before we move forward towards this trending Pharma stock, let's take a look at the Nifty Pharma sector technical structure.

Nifty Pharma: The Overview

Nifty Pharma made a high of 14938 on October 4 and thereafter, it had witnessed a dip of nearly 9 per cent from the highs. it halted its down move around the important moving average i.e, 200-DMA, which is the most widely followed moving average by the long-term investors. Currently, the stock is trading in the range of 13600-14200. This sector was one of the top-performing sectors during the unprecedented Covid pandemic time and acted as the torchbearer for the Indian market.

Trending stock in the Pharma Sector.

Cipla: It is one of the leading companies in the Indian pharmaceutical sector with a market cap of Rs 74000 crore. The company offers its products for the therapeutic areas, including cardiovascular, children's health, dermatology, diabetes and critical care, etc. The stock has corrected about 12 per cent its recent high of Rs 1005. Its current PE stands at 28.47 while the sector PE stands at 38.6 indicating that the stock is not trading at a high premium. Earnings per share (EPS) is increasing consistently YoY.

The stock is currently trading near above its 200-DMA and interestingly, it has reclaimed its 20-DMA. Furthermore, despite the fact that the stock has witnessed a correction of over 10 per cent, the 14-period RSI has never entered into oversold territory and currently, it is above the 45-mark. The Bollinger bands have squeezed, which usually represents low volatility regime and we anticipate that a period of low volatility would be followed by high volatility.

Considering that the risk-reward is quite favourable at current levels, traders can keep this stock on their watchlist. It is one of the attractive bets of the Indian pharmaceutical industry.

Open Demat Account

Enter First Name & Last Name
Enter Mobile Number
Enter correct otp
Please enter referal code
Start investing in just 5 mins
Free Demat account, No conditions apply
  • 0%* Brokerage
  • Flat ₹20 per order
Next Article

Start Investing Now!

Open Free Demat Account in 5 mins

There is some issue, try later