Novartis India share price jumped nearly 10% on Monday, 5 October, as the broader market recovered. The stock climbed to a high of ₹2,164.60 during the session. Sudeep Shah of SBI Securities said, "Novartis India took support around its 20-day EMA and subsequently witnessed a mild pullback." Growth plans remain steady.
Novartis India share price jumped nearly 10% on Monday, 5 October, amid a broader recovery in the Indian stock market following the Nifty 50's longest weekly losing streak in 25 years. Easing oil prices and receding concerns over aggressive US monetary tightening supported overall market sentiment.
The stock opened at an intraday low of ₹2,001 on the BSE and climbed to a high of ₹2,164.60 during the session.
He said the stock needs to sustain above ₹2,100 for positive momentum to resume, while the recent lows around ₹1,900 are likely to act as strong support.
Sudeep Shah, Vice President - Technical and Derivatives Research at SBI Securities, said Novartis India took support around its 20-day EMA and subsequently witnessed a mild pullback.
The stock continues to trade above key moving averages on both the daily and weekly charts, indicating a positive underlying trend, Shah said. The RSI has also been rising and is near 60 on the daily chart, indicating improving bullish momentum.
Shah identified the ₹1,910- ₹1,900 zone as an immediate support area, coinciding with the previous swing low. As long as the stock sustains above this zone, he said the broader bullish bias is likely to remain intact, with potential for the stock to extend its uptrend.
The brokerage noted that Novartis India is deploying more than 900 medical representatives to cover around 1.5 lakh healthcare professionals, with a greater focus on expanding its presence in Tier-2 and Tier-3 markets.
The strategy also involves reactivating under-promoted flagship brands such as Voveran, Methergin and Calcium-Sandoz, while growth is expected to be supported by six focus therapies, new product launches and acquisitions in chronic therapies.
The brokerage also pointed to the Accentrix/Pagenax ophthalmology deal as another growth opportunity for the company.
Management is targeting a doubling of the business over the next four to five years, according to Nuvama.
However, the brokerage expects margins to improve towards around 20% over the next two to three years, as the benefits of the new commercial model, portfolio expansion and scale begin to emerge.