Pharma on Fire as Nifty Bounces but Stays Below Key EMAs

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Nifty Adds Aggressive Short Positions, Slipping Below 10-day EMA: Angel One

By S JHA

MUMBAI, July 15, 2025 — Shares of Neuland Laboratories soared by over 18% yesterday amid an all-round rout in the stock market. In the last five days, the stock has risen by almost 25%.

The BSE Healthcare Index gained 1.15% yesterday. After realty, the pharma stocks were the top gainers. Yet, indices slipped big led by fall in the IT stocks, tracking disappointing Q1FY26 results of TCS.

Indian equity markets extended their losing streak for the fourth consecutive session, as the Nifty 50 closed marginally below the 25,100 mark, weighed down by weak global cues and sustained selling in IT stocks. The index declined 0.27%, finishing the day near 25,082, after staging a mild recovery in the final hour of trade.

Brokerage Angel One noted that the index gradually fell towards the 25,000 zone, reflecting persistent bearish pressure. The day’s close saw the index decisively slip below both its 10-day and 20-day exponential moving averages (EMAs), with a notable 8% rise in open interest suggesting aggressive short positions.

The broader market sentiment remained under strain, with less than 30% of Nifty 50 stocks trading above their 10-day EMAs.

The IT sector bore the brunt of the selling, triggered by global headwinds and investor caution ahead of key Q1 earnings. Major players such as Infosys, Wipro, and TCS saw sharp cuts, dragging the Nifty IT index significantly lower.

StockEdge, in its daily market update, highlighted that Sensex fell over 680 points to close near 82,500, while the Nifty 50 lost 0.21%.

“Despite the broad sell-off, select sectors managed to stay afloat. The Nifty Pharma Index witnessed broad-based buying and is expected to maintain its relative outperformance in the near term. FMCG and PSU banks also saw selective buying, helping cushion the overall market decline,” said StockEdge in its Telegram channel.

Among notable gainers were Eicher Motors, IndusInd Bank, and Titan, which managed to hold firm amid the volatility. On the losing end, Jio Financial, Tech Mahindra, and Bajaj Finance were among the most impacted stocks.

Key Technical Levels

Analysts at Angel One suggest that the 25,000–24,900 zone will play a critical role as near-term support. On the upside, resistance is expected around 25,200–25,250, near the 20-day EMA level.

Despite weakness in headline indices, midcap and smallcap stocks remained relatively resilient, buoyed by stock-specific action and continued participation from retail investors.

Market watchers advise caution, citing the fragile global sentiment and the potential for heightened volatility ahead of earnings and macro data releases.

(Disclaimer: This article makes no recommendation for any kind of trades in the stock market.)

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