Stock under Rs 200: This pharmaceutical stock is exhibiting strong momentum!

Nifty50 started the fresh week on a negative note as bears take over the negative baton from Friday’s weak close at Wall Street, as hotter-than-expected US inflation data bolstered expectations that the US Federal Reserve will need to continue raising interest rates.

The Nifty50 index has slipped below its important long-term moving average of 200-DMA and at the same time, it has registered a fresh swing low as it has skidded below Budget day’s panic low.

Sectoral performance 

Talking about the sectoral indices, barring Nifty Realty, all other sectoral indices were seen trading in the red. Nifty Media, Nifty Metal and Nifty IT were among the top three losers, losing in the range of 2.43-3.43%.

Pharma stock on the rise

Amidst all the chaos, there is one stock which has managed to show good momentum on Monday and the stock name is Venus Remedies.

Venus Remedies Ltd is an Indian Pharmaceutical company with a presence in domestic and international markets. It is primarily engaged in the business of pharmaceutical product manufacturing.

The stock jumped over 2% on Monday and interestingly, as we are into a couple of hours of the trading session and the stock has already witnessed good volume as the total trade volume recorded so far is over 30 days average volume.

Why the upmove? 

From a technical standpoint, the stock is trading above its short-term moving average i.e. 20-DMA and the slope of the moving average is trending higher. Apart from this, the major catalyst for Monday’s up-move is that company has received good manufacturing practices (GMF) certification from Saudi Arabia for all its production facilities at its unit in Baddi, Himachal Pradesh.

The Saudi Food and Drug Authority (SFDA) granted the certification, which included first-time approval for pre-filled Enoxaparin syringes and general injection facilities, and renewed approval for Cephalosporin and Carbapenem antibiotics and liquid and lyophilised oncology drugs, after an extensive review and audit of the company's facilities.