Stocks

Nifty Pharma Index hits over 16-month high

Reuters Aug 31 | Updated on August 31, 2018 Published on August 31, 2018

Nifty Pharma Index today hit over 16-month high, and according to technicals, the stock may test 10,960 points. Nifty Pharma Index gained as much as 2.66 per cent to 10,389.70, its highest since April 19, 2017.

The index broke above a resistance at 10,238.32 points, the 38.2 per cent Fibonacci retracement level of the downtrend from the April 7, 2015 high to the May 22, 2018 low. The breakout suggests that the index may now rise towards the next resistance at 10,960.52 points, the 50 per cent retracement level.

Earlier this month, the index's 50-day exponential moving average (EMA) cut above its 200-day EMA, forming a golden cross, a bullish sign. Trend intensity (TI) indicator at 33 and a positive MACD above its signal line favour an upmove.

Nifty Pharma Index had gone up 21.63 per cent in the last three months as of Thursday's close, outperforming the NSE Index's 10 per cent gain in the same period.

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Published on August 31, 2018
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