EquityPandit’s Outlook for CNX Pharma for week (July 27, 2015 – July 31, 2015):
CNX PHARMA index closed the week on negative note losing around 7%.
As we have mentioned last week that the resistance for the index lies in the range of 13300 to 13400 where Fibonacci retracement is lying for the entire down move, the index hit a high of 13200 during the week and sold off to the levels of 12180.
On 21/07/2015, Sun Pharma raised the red flag on the earning outlook which spook the pharma sector and the index opened gap down of more than 5%. During the week Lupin the other pharma major disappointed on earnings front and the index could not recover.
The index has closed the week below the 100 Daily SMA which was lying around the levels of 12400.
Support for the index lies in the zone of 11800 to 12000 where 200 Daily SMA is lying.
Resistance for the index lies in the zone of 12500 where short term moving averages and 100 Daily SMA is lying.
Broad range for the index is seen from 11800 to 12000 on downside to 12600 to 12700 on upside.