Pharma is an interesting sector to watch out for the rest of the year 2018 as Nifty Pharma Index today touched the psychological reference 10000 levels and also managed to close above 10000 levels which are also fresh 2018 year to date high. Interestingly Weekly sentiment turned positive in the pharma sector that brings more medium-term bullish momentum in this counter. Monthly Sentiment too holding positive for the last two months which brings long-term bullishness in this counter.
Nifty Pharma is currently trading above Nov 2017 high. Immediate resistance is expected around 10700 levels. Buy on dips prevails in this counter as the extreme sentiments in Nifty Pharma is currently turned to moderately bullish sentiment. Here is out past extreme sentiment analysis on Nifty pharma – 6 Reasons Why Nifty Pharma Will Make 50% upside from here.
News and Earnings results perspective still it is a mixed sentiment there. At least too much of negativity is gone out for time being. Possibly that could have at least forced out some of the perma-bears out of this counter. All the higher timeframe are indicating bullishness. Possibly a consolidation here is much required to establish a newer base as always trading around the psychological reference is not going to be an easier game. Stocks making a breakout in this counter could be scanned for further investing decisions.