Tag: Aurobindo Pharma

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Special Article : Pharma Sector; Large Addressable Market, But Few Concerns Remain

In recent times, margins are under pressure due to pricing demands in the U.S., forcing companies to cut expenses. Delays in approval of new drugs by the USFDA is another issue that pharma companies are facing. There is an increasing opportunity in China as new rules reduce the entry barrier. The domestic market has the potential to boost growth, as India is increasing spending on health care.

The revenue of top 10 Indian pharmaceutical companies was Rs. 1.3T for FY 2018, of which more than 40% was derived from the U.S. market. The major categories of business include generic medicines, marketing of branded generic medicines, marketing of innovator medicines, and the manufacture and supply of active pharmaceutical ingredients (APIs). Continue reading “Special Article : Pharma Sector; Large Addressable Market, But Few Concerns Remain”

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Beware of Distribution: Too Much of it in a Base Can Play Spoilsport

MarketSmith India_Learning Article

“For the best prospects, do a price and volume check of each week within the stock’s base to help you conclude if the stock is showing sound accumulation or too many price and volume defects. Next, do a fundamental analysis checking for excellent earnings, sales and return on equity..” – William J. O’Neil, MarketSmith Founder

In technical analysis, the process of identifying supply and demand in a stock starts with analyzing price and volume on the daily and weekly charts.

Are up days or weeks accompanied by heavy volume? Does the stock close in the upper half of the trading range, either on the daily chart or the weekly one? And on the down days, are they trading on light volume? If a stock falls on heavy volume, does it close in the upper half of the trading range? Answers to such questions in the affirmative strengthen the overall quality of a base pattern.

However, in some cases, the stock price might be volatile as the base takes shape, resulting in a “wide and loose” pattern. There might be a lot of institutional selling, in the form of distribution days or weeks, in the base. Both are negative and can keep a lid on a stock’s breakout.

Continue reading “Beware of Distribution: Too Much of it in a Base Can Play Spoilsport”