Nifty Pharma index witnessed profit booking on October 14 and fell 1.6% with Divi's Labs, Sun Pharma leading the losses.
Shares of most pharmaceutical companies have risen sharply since the war in West Asia started, as investors preferred the inelastic demand of pharma products.
Large-cap pharma companies are expected to report another weak earnings growth in the September quarter as negligible sales of high-margin cancer drug, generic Revlimid, is expected to continue to weigh on the profitability.
At 2:45 pm, shares of Divi's Labs, Sun Pharma, Zydus Life were trading 0.4%-3% lower and were the worst hit stocks of the Nifty Pharma index. Biocon, Wockhardt and Abbott India were the only stocks decisively in the green. Nifty Pharma index was trading 1.6% higher at 25,641.5.
The index is expected to find support at 25,400, while it will face resistance at 26,500. The overall structure of Nifty Pharma looks good on technical charts but the strength is mostly driven by stock-specific movements, Jatin Gedia, vice president of technical research at Teji Mandi Investment Technologies told Informist.