D-Street Buzz: Pharma stocks gain led by Lupin; Glenmark, Cipla, Sun Pharma up 2%

The Indian stock market continues trading in the green on hopes of more economic relief measures to blunt the impact of the COVID-19 pandemic. Sensex is up 99.50 points or 0.26 percent at 38409.99, and the Nifty gained 28.60 points or 0.25 percent at 11329.10.

Among the sectors, the pharma index gained 2 percent led by Lupin which jumped over 8 percent. The stock witnessed spurt in volume by more than 2.73 times and was trading with volumes of 496,951 shares, compared to its five day average of 224,696 shares, an increase of 121.17 percent.

The other gainers included Cipla, Sun Pharma, Torrent Pharma, Biocon, Cadila Healthcare and Alkem Labs which added 1-2 percent each.

Cipla was one of the most active stocks on NSE in terms of volumes with 1,02,63,306 shares being traded.

S&P BSE Healthcare gained over a percent led by Bliss GVS which jumped over 4 percent followed by Glenmark Pharma, Hikal, Indoco Remedies, Marksans Pharma, Neuland Lab, Vivimed Labs and Eris Lifesciences.

Vinay Rajani, Senior Technical and Derivative Analyst, HDFC Securities has a buy on Sun Pharma with target price at Rs 600 per share. The stock has broken out from the last six session's price consolidation with rising volumes.

In July, it confirmed the long-term downward sloping trendline breakout on the monthly chart. The stock is placed above all important moving averages, indicating a bullish trend, he added.

Sacchitanand Uttekar, DVP – Technical (Equity) at Tradebulls Securities has recommended a buy on SMS Pharma with target at Rs 120 per share. The upmove in the stock has been supported well with volumes while its recent continuation pattern indicates a likely move towards its life-highs placed at around Rs 120, he said.