Market Movers: Pharma stocks on a high, Happiest slips; 139 stocks flash buy signals

Mumbai: Pharma stocks continued their rally on Friday with many of the stocks hitting their 52-week highs, while the benchmark indices developed cold feet and logged small losses. Nifty ended up forming Bearish Belt Hold pattern in signs that the recent rally may be losing steam.

Among stock-specific action, Happiest Minds Technologies, which had had a dream debut on Thursday, edged lower as investors locked in some gains. Essel Propack dropped after an ET report that Blackstone would sell about 23 per cent stake in the company at a discount to Thursday’s market price.

Next week, three back-t0-back IPOs will dominate the market action as Computer Age Management Services (CAMS), Chemcon Specialty Chemicals and Angel Broking hit the market.

“Due to lack of fresh triggers, the current uncertainty is expected to continue. But any news with regard to the border standoff with China or global events can impact the markets on the downside. Investors need to be cautious and watch news-specific movements,” said Vinod Nair, Head of Research at Geojit Financial Services.

That said, here is a lowdown on what happened in Friday’s trade:

Pharma pack continues rally

BSE Healthcare Index was the top sectoral gainer as it rose 3.50 per cent, taking the index’s gains from its March lows to more than 86 per cent. In Friday’s trade, Natco Pharma rose 14.43 per cent to Rs 888.50, while Dr Reddy’s Laboratories jumped 10.36 per cent to Rs 5,326.70. Cipla climbed 7.29 per cent to Rs 806.85.

Happiest Minds Technologies drops

Happiest Minds Technologies, which saw a stellar debut on Thursday, when it rose 123.49 per cent to Rs 371, witnessed a bout of profit booking. The stock shed 3.38 per cent to close at Rs 358.45.

Essel Propack tumbles

Tube-packaging company Essel Propack dropped 7.73 per cent to Rs 251.90. ET reported that US-based private equity major Blackstone would sell about 23 per cent stake in the company at Rs 255 per share, in a deal worth $250 million (Rs 1830 crore.

Promoter action: Mindtree, Trident

Promoter Subroto Bagchi sold 32,869 shares in Mindtree, and trimmed his stake in the company to 1.21 per cent. However, the stock rose 0.29 per cent to Rs 1,278. Promoter group Trident Capital acquired 11,00,000 shares in Trident, taking their stake to 3.78 per cent. The stock rose 0.44 per cent to Rs 6.85.

Stocks that hit 52-week highs

A total of 164 stocks scaled 52-week highs on the BSE. These included Alembic, Apollo Hospitals, Biocon, Cipla, Divi’s Laboratories, Granules India, JP Chemicals and Pharmaceuticals, Lupin, Mindtree and Mphasis, among others.

Stocks that hit upper limits

As many as 285 stocks hit their upper circuits on the BSE. These included Ballarpur Industries, Ruchi Infrastructure, Butterfly Gandhimathi Appliances, Ramco Systems, Visa Steel and Aurinpro Solutions, among others.

Stocks that flash ‘buy’ signals

A total of 139 stocks flashed ‘buy’ signals on BSE, as they crossed above the signal line on the MACD indicator. These included Cipla, Aurobindo Pharma, Aditya Birla Money, Gati, Gujarat Gas and Piramal Enterprises, among others.

Where is Nifty headed?

Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said Nifty may trade rangebound with a negative bias in the short term. “There is a possibility of continuation of range movement for the next 1-2 sessions and there is a higher possibility of a retest of recent swing highs of 11,600-620 levels before showing yet another sharp weakness from the highs by next week,” Shetti said.