Weekly Outlook on CNX Pharma and its main components (July 27,2015 - July 31,2015)

DATE: 24/07/2015

WEEKLY OUTLOOK FOR CNX PHARMA AND

ITS MAIN COMPONENTS

(27/07/2015 - 31/07/2015)

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CNX PHARMA index closed the week on negative note losing around 7%. As we have mentioned last week that the resistance for the index lies in the range of 13300 to 13400 where Fibonacci retracement is lying for the entire down move, the index hit a high of 13200 during the week and sold off to the levels of 12180. On 21/07/2015, Sun Pharma raised the red flag on the earning outlook which spook the pharma sector and the index opened gap down of more than 5%. During the week Lupin the other pharma major disappointed on earnings front and the index could not recover. The index has closed the week below the 100 Daily SMA which was lying around the levels of 12400. Support for the index lies in the zone of 11800 to 12000 where 200 Daily SMA is lying. Resistance for the index lies in the zone of 12500 where short term moving averages and 100 Daily SMA is lying. Broad range for the index is seen from 11800 to 12000 on downside to 12600 to 12700 on upside.

CNX PHARMA


SUN PHARMA closed the week on negative note losing around 12%. As we have mentioned last week that the stock has formed a Shooting Star pattern on daily charts around the strong resistance zone of 960 levels in an uptrend indicating the trend re-versal. Also the stock has virtually filled the gap which was created when the stock opened gap down on 01/06/2015. The stock could not move above the resistance zone of 960 levels and sold off during the week on the back of news flow from the company regarding earnings downgrade. On the back of bad news from the company the stock sold off and has taken support around the zone of 800 from where the stock has bounced back multiple times. The stock has to sustain above the levels of 860 to resume the uptrend. Support for the stock is seen in the zone of 800 below which the stock can drift to the levels of 750. Broad range for the stock in the coming week can be 800 - 810 on lower side to 860 - 880 on upper side.

SUN PHARMA


Lupin closed the week on negative note losing more than 15%. As we have mentioned last week that if the stock manages to cross above the trend-line re-sistance positioned around the levels of 2000 we may stock moving towards the levels of 2100. The stock hit a high of 1983 levels and sold off to the levels of 1672, a drop of around 15% during the week. As seen from the chart the stock is approaching towards the strong support zone of 1650 where 200 Daily SMA and channel support are positioned. Resistance for the stock lies in the zone of 1700 to 1730. Broad range for the stock is seen from 1600 - 1630 on downside to 1700 - 1750 on upside.

LUPIN


Dr Reddy closed the week on positive note gaining around 1%. As we have mentioned last week that if the stock manages to cross above the channel resis-tance positioned around the levels of 3950, we may see stock moving towards the levels of 4200. The stock hit a high of 3965 levels on 23/07/2015 but could not sustain above it and close the day on 3913. On 24/07/2015, the stock could not move above the levels of 3950. The stock has formed a Doji pattern on weekly charts in an uptrend indicating confusion among the traders about the further direction of the stock. For uptrend to continue the stock has to close above the levels of 3965. If the stock manages to cross above the resistance zone of 3965 the stock can move to the levels of 4100. Support for the stock lies in the zone of 3750 to 3800 where short term moving averages are positioned. Broad range for the stock is seen from 3750 - 3800 on downside to 4000 - 4050 on upside.

DR . REDDY


CIPLA closed the week on negative note losing around 1%. As we have mentioned last week that the next resistance for the stock lies in the zone of 700 to 720 levels where lower end of upward moving channel is positioned. The stock hit a high of 691 during the week and sold off to the levels of 660 before recovering to the levels of 678. The stock has formed a Shooting star pattern on 24/07/2015, so stock has to move above the levels of 686 for uptrend to resume. Support for the stock lies in the zone of 660 where 100 Daily SMA is lying. Below which the stock can drift to the levels of 650 where 200 Daily SMA is lying. Resistance for the stock lies in the zone of 690 to 700. Broad range for the stock is seen in the range of 640 - 660 on downside to 700 - 720 on up-side.

CIPLA


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Weekly Outlook on CNX Pharma and its main components (July 27,2015 - July 31,2015)

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Transcript of Weekly Outlook on CNX Pharma and its main components (July 27,2015 - July 31,2015)