Rajandran R Telecom Engineer turned Full-time Derivative Trader. Mostly Trading Nifty, Banknifty, USDINR and High Liquid Stock Derivatives. Trading the Markets Since 2006 onwards. Using Market Profile and Orderflow for more than a decade. Designed and published 100+ open source trading systems on various trading tools. Strongly believe that market understanding and robust trading frameworks are the key to the trading success. Writing about Markets, Trading System Design, Market Sentiment, Trading Softwares & Trading Nuances since 2007 onwards. Author of Marketcalls.in and Co-Creator of Algomojo (Algorithmic Trading Platform for DIY Traders)

Sector Outlook : Nifty Pharma Sector Bottomed Out?

32 sec read

CNX Pharma

Nifty Pharma Index made a panic bottom (10353.9) last week followed by quick recovery but still year to date NIFTY PHARMA is down -8.7% year to date. Later Buyers started responding aggressively post the panic bottom. Pharma Heavy weights like Sunpharma, DR Reddy, Lupin lost -3.7%, -2.2% and -3.9% last week. However on the EOD sentiment NIFTY Pharma is holding positive for the last three consecutive days.

On the Daily timeframe Nifty Pharma has two gaps left unfaded so far. Gap Zones are at 11685 and at 12205.3 as shows in the above figure with dotted yellow lines. And the RRG Charts (Relative Rotational Graph) indicates currently Pharma sector is heavily under performing for a very long time and the relative momentum is dead there. It is time to look for a mean reversion in relative momentum and possibly the extreme sentiment in pharma stocks indicates a potential a bottom is made in the medium term.

CNX Pharma RRG Charts

Rajandran R Telecom Engineer turned Full-time Derivative Trader. Mostly Trading Nifty, Banknifty, USDINR and High Liquid Stock Derivatives. Trading the Markets Since 2006 onwards. Using Market Profile and Orderflow for more than a decade. Designed and published 100+ open source trading systems on various trading tools. Strongly believe that market understanding and robust trading frameworks are the key to the trading success. Writing about Markets, Trading System Design, Market Sentiment, Trading Softwares & Trading Nuances since 2007 onwards. Author of Marketcalls.in and Co-Creator of Algomojo (Algorithmic Trading Platform for DIY Traders)

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