Poly Medicure Stocks Registered a Breakout with 16% Growth

Pharma sector stocks registered a powerful breakout in which one stock rallied more than 16% in the second half of the week as it registered a strong powerful breakout with never before volumes on weekly charts. 

Nifty witnessed a strong bullish up move in last week as it rallied 1.4% and closed near to lifetime high level. In the same week, Nifty Pharma outperformed the benchmark index as it rallied nearly 3% and in such strong outperformance, some pharma sector stocks registered a powerful breakout in which one stock rallied more than 16% in the second half of the week as it registered strong powerful breakout with never before volumes on weekly charts. 

The stock is Poly Medicure Ltd, an India-based manufacturer and exporter of medical devices. The company exports plastic medical disposables/surgical devices. Its products are used in infusion therapy, central venous access catheters, blood management, urology, dialysis, diagnostics, and paediatrics. The company was founded by Jugal Kishore Baid on March 30, 1995, and is headquartered in New Delhi, India. 

Technically on the weekly chart, after the massive rise of nearly 600% from the lows of June 2019, the stock is consolidating in a broad range of Rs 1165 on the higher side and Rs 651.10 on the lower side from the second last week of May 2021. Interestingly the lower side of the consolidation range is exactly the retracement support level of 50% of the last multibagger rally on the weekly chart. If we draw the line from the high of last week of July 2021 (Rs 1094.25) and mid-week of March 2023 (Rs 1045) we’ll get the breakout trendline of the continuation price pattern named “Bullish Up-Flag”. 

The reason for discussing this stock now is that it has registered a breakout of this pattern by closing above this trendline and rallied higher on the weekly chart with strong volumes of more than 3.8 million shares which is never before in the history of the stock. The minimum possible targets of this pattern will be around Rs 1350 which is more than 30% higher than the breakout level (Rs 1035). 

Considering all these factors, Strong bullishness is confirmed on the weekly chart thus it is needed to be on the radar for buying opportunities for the next few sessions.