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Business News/ Markets / Stock Markets/  Nifty Pharma index gives breakout. Experts give 'buy' tag to these stocks
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Nifty Pharma index gives breakout. Experts give 'buy' tag to these stocks

Pharma major Divi's Lab share price surged around 10 per cent while Aurobindo Pharma shares added 4 per cent in early session

Some pharma stocks have given breakout and one can buy those stocks for more gains in next 2-3 months, say stock market experts (PTI)Premium
Some pharma stocks have given breakout and one can buy those stocks for more gains in next 2-3 months, say stock market experts (PTI)

Stock market today: Nifty Pharma index is up around 2 per cent today after giving breakout at 14,500 on Friday. Pharma major Divi's Lab share price has surged around 10 per cent, Abbott India shares shot up 5 per cent, shares of Gland Pharma rose around 4.50 per cent whereas Aurobindo Pharma shares added 4 per cent in intraday session.

Some pharma stocks have given breakout and according to experts, one can buy these stocks for more gains in next 2-3 months. They advised that one can look to buy Dr Reddy's, Sun Pharma, Cipla and Divi's Lab shares today.

Speaking on the reason for rise in pharma stocks; Sumeet Bagadia, Executive Director at Choice Broking said, "Nifty pharma index has given breakout at 14,500 on closing basis on Friday. So, most of the pharma share are skyrocketing today. In fact, in this fresh breakout in pharma index, some of the pharma majors like Sun Pharma and Dr. Reddy's shares have given fresh breakout today and one can buy these pharma counters for immediate short-term gains."

Echoing with Sumeet Bagadia's views; Ravi Singhal, Vice Chairman at GCL Securities said, "One can buy Dr. Reddy's, Sun Pharma, Cipla and Divi's Lab for 2-3 month time horizon. Investors can initiate momentum buy in Dr. Reddy's shares at current market price for the target of 5340 maintaining stop loss at 4970. Similarly, one can buy Sun Pharma at current market price for the target of 880 to 920 maintaining stop loss at 804. For those who want to buy Cipla stocks, they can maintain stop loss at 966 and book profit at around 1120 levels. Likewise, one can initiate momentum buy at current market price in Divi's Lab shares for the target of 5500 maintaining stop loss at 5100 levels."

For those who want to take position in pharma stock for short term; Sumeet Bagadia of Choice Broking said, "One can buy Sun Pharma at CMP for the short-term target of 875 to 900. One can initiate momentum buy in Dr. Reddy's shares at CMP for short term target of 5200 to 5250."

Nifty pharma top gainer, Divi's Lab is in focus today as the company is MSD's authorised manufacturer for Molnupiravir API — a drug that has been found to reduce the risk of hospitalisation or death by near 50 per cent of those most at risk of contracting Covid-19, showed a planned interim analysis of data from phase 3 clinical trials by Merck.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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ABOUT THE AUTHOR
Asit Manohar
Chief Content Producer at Live Mint Digital Team
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
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Published: 04 Oct 2021, 12:16 PM IST
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