Nifty Pharma dips to 7-mth low; bears may gain control if breaks 52-wk low

Barring Sun Pharmaceutical Industries, which is anticipated to rally up to 10 per cent; other stocks indicate weak bias, as per technical charts

Nifty Pharm index broke a 7-month low, post two of its constituents disappoint specification of the US Food and Drug Administration (USFDA). Shares of Cipla plunged towards its 52-week low of Rs 883.75 after the drug regulator issued eight observations to its Pithampur-based manufacturing unit. 

In similar incident, Biocon failed to meet degradation specifications necessitating the recall 3,665 bottles of antifungal medication. On Tuesday, the share price slipped to its new 52-week low.

The broad trend in the Nifty Pharm index has been satisfactory since November last year.  The index trades close to 20 per cent lower from its all-time