NIFTY PHARMA ANALYSIS AND MY TOP STOCK SELECTION FOR THE COMING WEEK

Good day, readers.

I hope you had a wonderful week and are looking forward to Monday.

I’m back with another blog post in which I’ll look into Nifty Pharma.

The hot sector for the coming week will be pharma, as evidenced by a breakout post-consolidation on the daily chart.

Since May 10th, 2021, the Pharma sector has made a double top pattern and was in a consolidation phase.

Finally, on July 16th, the double top pattern was broken by a decisive breakout.

The basis for my analysis is a bull flag pattern.

The bull flag is seen as a trend continuation pattern.

It consists of:

a flag pole which is a rally of prices,

a consolidation phase,

and then a breakout.

After the breakout, I expect the pharma surge will resume in the coming week.

I measured the flagpole’s length and projected it from the 14527.3 breakout level.

I estimate a 22.6 percent increase in price to the target level of 17754.95, as mentioned on the chart.

For the coming week, I recommend keeping an eye on pharma stocks.

MY TOP STOCK PICK

DIVISLAB

This stock belongs to the pharma sector.

Technical Analysis:

  • There’s a bull flag breakout on the 16th of July’21.
  • The buyer’s volume looks promising on the breakout candle.
  • I am expecting a total up move till 5174.4.
  • You may scale-out your positions in phases.

Fundamentals:

  • It has the highest market capitalization in the pharma sector.
  • It’s ROE and ROCE are both more than 20%
  • The company is completely debt-free.
  • Promoter holding is greater than 50%
  • Free cash flow is good.
  • CAGR of Profit and Sales for 3 years is growing at a rate >20%

I hope you now have a better understanding of how to trade the bull flag chart pattern.

In the comments, let me know which sector you’ll be watching this week.

If you have any questions, please contact me at: 𝙰𝚗𝚊𝚒𝚍𝚊 (@anaida__sultana) / Twitter

Until the next time…

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