Investing in Glenmark Pharma: What You Need to Know

Glenmark Pharmaceuticals Ltd., a mid-cap company incorporated in 1977, has seen a significant surge in its stock price, breaking out of a falling trendline and experiencing a sharp rise after a small correction. This upward trend was further bolstered by a crossover of the MACD (Moving Average Convergence Divergence) into positive territory, signaling a potential shift in momentum.

Technical Analysis and Broader Market Risks

Technically, Glenmark's performance remains promising, particularly in light of the ongoing pandemic situation. However, as with any stock, broader market risks could still slow its progress. It's important to approach "hot" or trending stocks with caution, as they tend to be highly volatile. It is highly advised to consult with an investment advisor before making any decisions.

A Bit About Glenmark

As of September 30, 2020, Glenmark Pharmaceuticals Ltd. had a market capitalization of Rs 16690.25 Crore. The company operates in the pharmaceutical sector and holds a diverse stakeholder base, including institutional and foreign institutional investors (FIIs) and domestic institutional investors (DIIs). The public holds 23.1% of the shares, making it accessible to a wide range of retail investors.

Should We Invest in Glenmark?

The answer is a resounding Yes! The stock has exhibited a strong upward trend over the past six weeks, breaking through key resistance levels. For short-term investors, the stock could be a good addition to their portfolio with a target price of around Rs 630. Given the recent increase in COVID-19 cases, the pharma space is showing signs of revival, with Glenmark experiencing a 150% increase in sales for April due to the launch of the Fabiflu drug. Long-term investors could focus on a target price of Rs 750 over a sustained period.

Conclusion

The current scenario presents a viable opportunity for investors to consider Glenmark. With the company's strategic moves and the backdrop of continued pandemic activity, the outlook for Glenmark remains bullish. However, as always, it's crucial to factor in broader market risks and consult with expertise before making any investment decisions.

Key Takeaways

Glenmark has broken out of a falling trend, showing strong technical signals. The stock's upward trend aligns well with current market conditions due to the ongoing pandemic. Short-term targets for Glenmark are set at around Rs 630, with long-term targets around Rs 750. Despite the promising outlook, it's essential to remain cautious and consider broader market risks.

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