Two pharma stocks that Ajit Mishra of Religare Broking is bullish on

All indicators point to a gradual rise in Aurobindo Pharma's stock from the 100 EMA support

Buy Ambuja Cements Limited

Last Close: Rs 217.45

Initiation range: Rs 212-215

Target: Rs 234

Stop loss: Rs 205

The cement pack has been gradually inching higher for the last five months. Among the prominent names, Ambuja Cement has formed a fresh buying pivot, after a marginal dip to the major support zone of multiple moving averages around 205 levels. Traders can consider initiating fresh longs in the given range.

Buy Aurobindo Pharma Limited

Last Close: Rs 818.80

Initiation range: Rs 810-815

Target: Rs 890

Stop loss: Rs 775

We’re seeing noticeable traction in the defensive pack and Aurobindo Pharma is also trading in line with the move. After making a new record high in August 2020, it retraced to the support zone of the medium-term moving average(100 EMA) on the daily chart and formed a base. All indications are in the favor of a gradual rise from hereon. We advise accumulating in the mentioned zone.

Buy Indraprastha Gas Limited

Last Close: Rs 419.85

Initiation range: Rs 414-418

Target: Rs 450

Stop loss: Rs 400

IGL has been witnessing correction for the last three months, after making a new record high of 520 in June 2020. It has formed a double bottom pattern(bullish reversal in nature) on the daily chart and trading on the verge of a breakout from the same. The positive divergence between the price chart and RSI oscillator is adding to the confirmation. Traders shouldn’t miss the opportunity and accumulate in the given range.

Buy Dr. Lal Path Labs Ltd.

Last Close: Rs 1,922.80

Initiation range: Rs 1,890-1,910

Target: Rs 2,020

Stop loss: Rs 1,840

In line with other healthcare-related counters, the stock has gained considerably in recent months. After the marginal dip to the immediate support zone around 1750 levels, it has rebounded sharply with a noticeable rise in volume. Considering the prevailing trend and buoyancy in the overall sector, traders should use any dip in the mentioned zone to create fresh positional longs. 

Disclaimer: Ajit Mishra is VP - Research at Religare Broking

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