INDIAN PHARMA - THE STORY HAS STARTED

This may seem an outrageous title to few, specially those who have been riding the story and making money already. Charts suggest that we should be ‘greedy rather than afraid’ as far as this sector is concerned.

The weakest big pharma companies (price action wise) Sun Pharma and Lupin have had their best day today since years.

Irrespective of their market capitalisation, pharma and related chemical stocks have risen by 100% to 300% in past 12 months. This is the only sector which falls less on bad nifty days and rise sharply in good nifty days.

Price action is followed up by good results, capex plans, debt reduction and good cashflows.  

“You can’t guess how far a trend will extend” – P.T. Jones

“Price makes news. Not the other way round. A market is going to go where a market is going to go” – P.T. Jones  

Lets manage our risks and take our chances.