Watch out for this top-performing pharma stock!
5paisa Research Team
Last Updated: 10th December 2022 - 04:48 am
On Tuesday, the Nifty opened with a gap-up around 17,297 levels and thereafter, it went on to touch an intraday high of 17,322.25 levels. However, profit-booking emerged at higher levels and we saw the Nifty cooling off from its day high and it has slipped below the 17,300 mark.
Among the sectoral indices, Nifty Pharma is among the top-performing sectoral indices in today’s trading session. Interestingly, all the constituents of Nifty Pharma are trading in green with Divis Laboratories being one of the top gainers.
The stock of Divis Laboratories has jumped over 2.5% and it has contributed nearly 4 points to Nifty’s kitty. The stock has formed an opening bullish Marubozu candle, this candle has no lower shadow as the open and low are identical. Opening bullish marubozu candle indicates an extreme bullishness as after opening the price starts to increase, forming a long body without lower shadow.
The stock of Divis Laboratories rallied nearly 15% from its recent swing low of level Rs. 3974.05 on March 7, 2022, and the stock in the next 15 trading sessions went to made a high of Rs. 4573.85 level on March 23. After the strong up-move the stock entered into a counter-trend move from its swing high and this counter-trend move halted at 20 DEMA (Exponential Moving Average).
Among the oscillators, the MACD line is trading above its signal line and zero line which indicates a positive trend in the stock. In addition to this, the MACD line is above the zero line since March 10. The 14-period Relative strength indicator (RSI) is near 60 marks.
The stock is trading above its short-term moving averages i.e.; 20 DMA and 50 DMA. This setup is indicating an uptrend in the picture of the stock.
We expect the stock to maintain a positive bias and it has the potential to relatively outperform the broader indices in the weeks to come.
Also read: Trending stock for the day: Rashtriya Chemicals and Fertilizers Ltd
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