Friday, June 30, 2017

Faadoo Stock Analysis on CNX pharma and 2 pharma stocks one can invest in

Pharma Sector

The following 2 stocks look extremely well positioned including the fact that some competitors have faced observations from US FDA a good news for them.

1) Auro Pharma (least exposure to US markets and decent performance of the past accompanied with new product launches and approvals in pipeline makes it a good candidate to keep in portfolio)

2) Sun Pharma (The company is downtrend due to USFDA observations which resulted in dismal performance but long term fundamentals are intact )
 If you are an investor believe you me India is yet to experience the greatest bull run of the century and one can invest everything in the stock market. Recommended would be 100 - your age.

e.g If you are 25 years old you should invest 100–25 i.e 75% of your investment in high risk high reward instruments namely mutual funds and stocks (not penny and useless management)

The below technical chart indicates a breakout in pharma sector stocks and we may see good movements in time to come owing to increasing compliance to USFDA guidelines. Why will someone willingly mess with the rules if that could result in loss of crores e.g Divis, Glenmark, Sun Pharma and Auro Pharma.

CNX Pharma Technical chart Analysis

(1) indicates that after a long downtrend it took support at 8600 levels and those were the levels seen in 2014 i.e. 3 years back. Post this it continued in channel (1) and once it broke the channel support at 9500 levels it was range bound for 1 month 9400–9500 levels today it has given a good move and if it breaks resistance of 9750 levels we may see 10000 coming.
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