Dr Reddy's, Divi's Lab, Torrent Pharma: What lies ahead for pharma stocks?

Except Sun Pharma and Lupin, others have grown significantly and are showing less reversal signals.

Most pharma companies have underperformed the benchmark indices in the past one year. Barring Divi's Labs (up over 32 per cent) and Dr Reddy's (up 29 per cent), rest of the pharma stocks from the Nifty Pharma index have given negative returns in the last one year as compared to nearly 13 per cent gain in the Nifty50 index (as of Friday's close). 

Here's how to trade pharma stocks going ahead - 

Dr. Reddy's Laboratories Ltd (DRREDDY): As the counter shows stability above Rs 3,000 levels, which was the major resistance on the monthly chart, the overall trend looks optimistic