Sometime back during Apr 2016 we have curiosity about pharma sector bottoming out. By that time sector has strong negative sentiment while hitting the panic bottom from there is had made a 2016 high of 12011. We believe that longer timeframe players are still interested in this sector though the presence of intermediate buyers.
On the Daily Chart sellers failed to breach below the critical support zone 11340 indicates that shorter timeframe sellers are not serious about taking the price down at this point and buyers are responding to the move holding the price above 11340. So once again it is time to speculate on pharma sector for the arrival of strong buyers and taking the sectoral index towards the 2016 high zone.
RRG Charts – CNX Pharma
RRG Charts suggests that currently Nifty Pharma in improving quadrant and rising momentum suggests that possiblly it could outperform Nifty in the short run from hereon.