Greenshoots for 2020-21 - Part 1

Whether we are in a bull market or a bear market, we will always have a few sectors who will have a market of their own. They will be in bull or bear market of their own irrespective of the trend in which the market is flowing. In the same context the Pharma sector was in a bear market of it's own for the past many years as compared to the world market which had been in a bull market for quite a long time. Suddenly the pharma sector seems to be gathering some pace and getting out of the bear market, whatever be the reason. We are not discussing the reason here. This can be seen here in the below chart which has been in a clear downtrending channel for past many years.

Pharma Sector Chart - Date 7th April 2020

Notice the Blue arrow here which clearly indicates that the Pharma sector has come out of a range. However we may need some more cofirmation and a full breakout from the downtrending channel for the sector to start a fresh upside.

One of the part of the Pharma sectors is Cadila Healthcare. Have a look at the chart below which is clearly indicating that it Has broken out of the channel and now looks good for some more upside. (Please clearly note that this is not a buying recommendation and its just my own analysis, and if you are planning to buy this or invest in this then do consult your financial analyst or make your own research). Let us just keep a track of how this starts to move from here.

Cadila Healthcare Chart - 7th April 2020

We can see that this stock seems to be coming out of a strong accumulation marked in the yellow and the pink part marked. This could probably be the stock to watch out in days to come.

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Thanks,

Abhijeet