Piramal is a desirable stock: Deepak Mohoni, director, trendwatchindia.com

Deepak Mohoni, director, trendwatchindia.com, in a chat with ET Now talks about pharma stocks.

What about a Piramal Lifescience which has gained up over 30% in the last two days alone or for that matter, the Strides Arcolab, on the charts?

Piramal Lifescience was completely sideways. It broke out a couple of days back and has made this move. Now this is not a market where moves continue. So they break out last day or two and then they settle down at the current levels or even come back to reduce the gains to half or so. So given that if somebody happened to have this stock before the breakout, great for them but you cannot really get into it now.

But Piramal looks a little better. Piramal Healthcare because that has been consolidating at its current bull market high. Whenever I say current bull market, I mean the one that has been on since the last year or so and that is a more steady sort of uptrend, which does not just break out and collapse but would tend to gradually keep moving up. That’s probably a more desirable stock in that way. Strides Arcolab has become a bit of a trading play lately. It has to be remembered this is not a defensive pharma stock nor is Aurobindo. Both these stocks can fall quite heavily like Ranbaxy does whenever the market turn sour. So if you are looking for a defensive pharma stock, which can continue rising in the bull market, then the Sun Pharmas, Lupin Pharmas are better choices.