Sector Pulse – Nifty Pharma Index

Price Action Overview:

The Nifty Pharma Index extended its upward momentum through late 2025, closing the recent week at 22,998.30, maintaining a well-defined uptrend visible on the weekly chart. In the month of November 2025, it gained 822 points raising 3.7%. Over the past several months, the index has been moving within a rising parallel channel, forming a healthy sequence of higher highs and higher lows, signalling steady accumulation.

The index is now inching closer to the 23,500–24,000 zone, with price action showing strong bullish intent. Importantly, it is trading very close to its previous All-Time High and remains comfortably positioned near the upper band of the rising channel. A convincing breakout above 23,200–23,300 could open the door for a sustained move toward 24,000 levels, potentially marking fresh lifetime highs in the coming weeks.

Throughout 2025, Pharma has shown a strong recovery from mid-April lows, with consistent buying emerging near the lower channel support. Recent candles reflect renewed momentum, supported by tight consolidation followed by bullish follow-through in the last few weeks.

Moving Averages (50-Day EMA and 200-Day EMA):

50-Day EMA (22,398.45) is trending steadily upward, confirming strong medium-term momentum. For the past several weeks, the index has stayed consistently above this EMA, using it as a dynamic support level during minor dips. The price closing above the 50-day EMA for the majority of the recent sessions reflects sustained buying interest and the resilience of the ongoing trend.

200-Day EMA (21,939.55) sits well below the current price, reinforcing the long-term bullish trend in the Pharma index. Since the April 2025 recovery, the index has closed below the 200-day EMA only once (September 2025), reflecting strong underlying momentum and solid investor confidence. The expanding distance between price and the 200-day EMA further underscores the strength and durability of the ongoing uptrend.

The alignment of the short-term EMA above the long-term EMA confirms a healthy and sustained bullish structure in the Pharma space.

Weekly RSI-14 (Relative Strength Index):

The Weekly RSI stands at 59.17, indicating stable bullish momentum with ample room before entering overbought territory (>70). RSI has remained above 50 since May 2025, confirming strong demand and supporting the case for further upside. A push above 65–70 in the coming weeks may signal momentum acceleration toward fresh all-time highs.

Trend Analysis:

The Nifty Pharma Index has shown a steady improving trend through 2025 despite early volatility. After a sharp Jan–Feb decline, the index briefly dipped again in early April due to the U.S. tariff shock, but this weakness was short-lived.

From March to July, Pharma staged a strong rebound of nearly 15%, marking a clear shift back into an upward trajectory. The Aug–Sep pullback served as a healthy consolidation phase, with consistent support emerging near the 21,400 zone, preventing any breakdown in structure.

Momentum strengthened again in October–November, with the index rising around 7%, signalling renewed buyer interest and positioning it near recent highs. Overall, the index remains in a constructive uptrend, with scope for further upside if current momentum holds.

Industry Analysis:

India’s pharmaceutical sector remains one of the world’s most competitive, driven by cost-effective medical tourism, strong manufacturing capabilities, and expanding domestic demand. The industry, valued at ₹4.71 lakh crore (US$55 billion) in 2025, is projected to more than double by 2030, supported by affordable HIV treatments, global vaccine leadership, and rising consumption. India hosts the largest number of USFDA-compliant plants outside the U.S., exporting to 150+ countries. Government initiatives including the ₹15,000-crore PLI scheme, SPI support for MSMEs, and the growing Jan Aushadhi network strengthen innovation, quality, and access. Meanwhile, rising FDI inflows and CRDMO expansion reinforce India’s global pharma dominance.

Leading Picks in the Pharma Space:

• Sun Pharmaceutical Industries Ltd – (Index weightage – 23.18%).
• Aurobindo Pharma Ltd – (Index weightage – 4.12%).

Conclusion:

The Nifty Pharma Index remains firmly in a bullish trend, supported by rising 50-day and 200-day EMAs, a constructive weekly RSI, and a strong rising channel structure on the weekly chart. As long as the index holds above 22,400, the broader uptrend remains intact. A breakout above 23,200–23,300 could open the path toward 24,000–24,500. Key supports: 22,700 / 22,400 / 21,950.

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