Monday, 10 September 2012

Stocks that one can consider buying in this falling market - Pharmaceutical Sector

Every now and then people search on the internet to know which stocks to invest on and just keep it in portfolio for a while and not sell them off immediately

For the above statement to be true the market has to be on an uptrend always?, if I say so are you going to really believe it? of course not. When NIFTY goes down not all stocks go down there are a few which climb up slowly but then very steadily

To the extent that if you stop investing at a certain level then it may not revisit it again in the future. So I'm sure all of us are equally curious to know which stocks to buy in this long term downtrend market. Of course NIFTY has the capability to touch 5500 but then what will happen after that. Looks like it will see its downfall in Oct

Does that mean that one can never buy when NIFTY will climb down?, the answer is "No", you can think of investing even in a falling market and you can steadily keep doing it

My advice is basis purely on technical analysis and I have taken enormous amount of quality time looking at several charts to arrive at the conclusion

Mostly the defensive stocks especially in the pharmaceutical space look very attractive and just seem to be doing the right thing on chart. In my previous posts I had mentioned about Investing fundamentally and playing technically http://analyzestockmarket.blogspot.in/2012/08/invest-fundamentally-and-play.html however you can also consider investing technically and keep it for a long term as well

Below are some of the stocks that I find very fascinating on charts and I use one of the key indicators to derive this statement

Technical Indicator - Chandelier Exits

Chandelier exits is one lagging indicator which looks at a combination of average true range and then plots a line on chart, any stock that is above the chandelier line shows that it has good strength and likewise the stocks that I'm going to mention are of the same type for couple of months

While it is good to see other indicators, elliot wave analysis etc, chandelier exits is one indicator which gives you a medium term to a long term view to keep stocks in ones portfolio


Without any further delay let me present to you couple of stocks from the pharmaceutical space 

1. Cipla
2. Biocon
3. Sun pharmaceuticals
4. Divis Lab
5. Cadila healthcare
6. Aurobindo Pharma
7. Wockhardt
8. Glenmark
9. Piramal Healthcare
10. Ranbaxy
11. Lupin


Note the numbers do not mean priority but just to be treated as a count

Fundamentally if you want to order buying the stocks mentioned above the look at the debt numbers, net profit, net sales etc

I have mentioned links from moneycontrol website which may be helpful for you to take a call on the above stocks




For any queries on performance of the above stocks mentioned please send an email to researchstockmarket @gmail.com or you can use the comments section to keep extending this topic for discussion



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