Trading strategies for Thyrocare, Dr Lal Path, Metropolis amid Covid scare

Thyrocare, Dr Lal Path Labs and Metropolis are trading almost 50 per cent below their respective all-time highs, the reversal may see breakout if the key respective levels are sustained

Select states in India, including Maharashtra and Kerala, have witnessed a spike in daily Covid-19 cases. While the authorities have stepped-up their efforts to control the spike by making face masks compulsory in Maharashtra among other measures, the monsoon season coupled with re-opening of schools and offices could add to the woes for the authorities.
 

Given this background, shares of healthcare related stocks including pathologies are likely to be on investors' radar. In trades so far on Monday, shares of Thyrocare Technologies have soared 4 per cent, while Dr. Lal Path Labs and Metropolis Healthcare have witnessed over 2 per cent gain.
 

Here’s an outlook for pathology stocks for the upcoming sessions:

Thyrocare Technologies Ltd (THYROCARE) 

Likely target: Rs 750 

Upside potential: 12%   

Shares of Thyrocare Technologies trade almost 50 per cent lower from the historic peak of Rs 1,435 recorded a year ago. The stock not only trades under major supportive moving averages of 50-day moving average (DMA), 100-DMA or 200-DMA, but also has formed a bearish chart pattern with a “Lower High, Lower low", shows the daily chart. That said, the stock now lingers around the breakout mark of 2020, which is around Rs 650 to Rs 620 levels. 

If the price action manages to sustain this breakout support, then it may again revive to an upside rally. The stock could see a jump towards Rs 750, its next immediate hurdle and may rally further to Rs 1,000 mark upon showing decent sustainibility.  CLICK HERE FOR THE CHART

Dr. Lal Path Labs Ltd (LALPATHLAB)

Likely target: Rs 2,400

Upside potential: 10%

As per the present chart formation for the stock, that has shed 50 per cent, seems to indicate a short-term rebound. The positive rally could stretch to Rs 2,400 mark, its next resistance. As long as the stock holds the momentum above Rs 2,000, a positive rally seems possible. The following support comes at Rs 1,700 level. The medium-term trend could change to a bullish bias only upon crossing the Rs 3,000 level, indicates the daily chart.  CLICK HERE FOR THE CHART

Metropolis Healthcare Ltd (METROPOLIS)

Outlook: Trading range bound

The most battered stock in the pathology segment has lost 55 per cent in the past six months and continues to see weakness under the support of Rs 1,800 level. The next support for the stock comes in the range of Rs 1,500 to Rs 1,450 levels and until the stock does not conquer Rs 1,800 level, its crucial hurdle, the positive bias may not see any addition, shows the weekly chart. CLICK HERE FOR THE CHART