2 Sep 2021 ● 08:54 AM
When pharma stocks went through a corrective phase, two scenarios were mentioned for the BSE Healthcare index. Scenario one, taking multiple 1 and 2s which was also the preferred scenario as it was matching with the wave counts on the weekly chart, and the alternate scenario was the entire move from March 2021 to July 2021 was a five-wave rise and possibility of a deeper retracement. With now, the BSE Healthcare index breaking out above the July 2021 high, sticking to the first scenario would make more sense. Wave III of (3) should now unfold. This would mean that in the medium-term, BSE Healthcare index can possibly rise higher towards 31575 where wave (1) and (3) will be equal. On the way down, the low of 25375 will now be a crucial support level to watch out for in the forthcoming weeks.