Cup and Handle kind of Breakout on cards for Pharma Index.

NSE:CNXPHARMA   Nifty Pharma Index
Technically Pharma index is on the verge of giving a cup and handle like breakout in addition to news of new COVID variant making waves. The Pharma index also looking very buoyant. If this particular index can give a closing above 16515 there can be an upsurge 16734 or even 17177 levels taking the index constituents higher along with it.

Major companies in pharma index are Abbott, Cipla, Glaxo, Sanofi, Pfizer, Dr Reddy's, Lupin, Torrent Pharam, Ipca Labs, Sun Pharma, Aurobind Pharma, Natco Pharma, Granules India, Gland Pharma, Alkem, Biocon, Glenmark, Zydus Lifescience, Divi's lab, Laurus lab. Some companies good companies of Mid and Small cap pharma can also yield positive momentum.

Post identification of a strong index what you can do is try to look at the charts of each constituent of the index individually and select the stocks with best EPS, PE ratio, Good Cash flow from operations, Revenue and Net Profit growing year on year and quarter on quarter.
Remember that now all the stocks in an index will move equally some will move faster, some will move at the same pace, some will move slowly and some will not move at all or move negatively. You have to be smart in selection of your stocks from the particular index and you will surely be able to beat the market and Ace the art of investing. There are many Pharma related Mutual funds that can also be looked at.

Investment in stocks and mutual funds is subject to market risks, please consult your investment advisor before taking financial decisions. The data provided above is for the purpose of analysis and is purely educational in nature. The names of the stocks given in the above article and chart of IT Index is only for analysis. Purpose of this article is educational. Please do not consider this as a recommendation of any sorts.

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