Aditya Arora on where money can be made in pharma space
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Synopsis
Aditya Arora of Adlytick maintains a cautious view on the market due to the lack of broad-based rally. Smallcaps are correcting while safe havens like gold and pharma are performing well. Money can be made on the long side of the pharma space and the short side of high beta counters.
What are you making of the trading setup?
Aditya Arora: As you rightly said, the market is lacking momentum and is lacking some strength to inch to newer highs although certain pockets are doing well, like Nifty PSE basket, the energy basket. But on the other hand, the smallcap index is correcting. More stocks are declining compared to advances.
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So, what are your favourite trading ideas right now?
Aditya Arora: I have a long on the pharma counter. Pharma clearly stands out at this point in time. So, my buy is on Zydus Life, which could be bought at Rs 948 with stop loss at Rs 910 and the target is Rs 1000 and 1040.
Can you check a stock by the name of Piramal Pharma for us?
Aditya Arora: I think all the pharma counters are doing well. It is a broad-based rally in the pharma space whether you talk about largecaps or midcaps. This has been consolidating since a long time and unlike other counters, there has not been a lot of traction. If we look at the long-term structure of this stock, then it is trading at support only, that is placed at Rs 130, 125. This could be bought at this price and stop loss should be Rs 120 and target would be Rs 140- 150. So, long bias on this side.
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