Top 5 Healthcare Stocks to Watch Amid Rising HMPV Cases in India

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5 Healthcare Stocks to Monitor Considering the Increase in HMPV Cases: Is It Worth the Investment?

The healthcare and diagnostics sector appears to have been busy in the stock market during the past few days owing to the diagnosing of Human Metapneumovirus (HMPV) cases in India. On Monday, India reported its first two cases of HMPV in Bengaluru. There was a jump on healthcare stocks on Tuesday after the announcement.

HMPV is a virus that attacks the respiratory system. After the first case of HMPV was reported in China, it was also detected in Malaysia. And now, India warms to it. So far, there have been eight cases, India, in which children were involved: five in Karnataka, two in Tamil Nadu and one in Gujarat. To manage its spread, the central government has directed the states to enhance surveillance of patients with Influenza-like Illness (ILI) and Severe Acute Respiratory Infections (SARI).

There is no need to panic since the situation is being watched closely and precautions taken, Health Minister J.P. Nadda reassured the public.

The news has certainly rekindled interest in the medical and diagnosis stock segment. Indraprastha Medical Corporation shares witnessed gains of up to 7% on Tuesday while Vijaya Diagnostic and Dr. Lal Path Labs also enjoyed significant pick up in their stocks. The investors are now more focused on the medical sector, have questions on how long this drive will last. The rest of the article will analyze the technicals of some significant healthcare shares.

Apollo Hospitals: Positioning for a Break Out

Current Price: ₹7,517

Upside Potential: 4.9%

Support Level: ₹7,455

Resistance Levels: ₹7,630 and ₹7,770

The shares of Apollo Hospitals are right at the verge of breaking out. If their price sustains the level of ₹7,455, we could further see them reaching the levels of ₹7,885.

Dr. Lal Path Labs: Going from Strength to Strength

Current Price: ₹3,116

Upside Potential: 10.6%

Support Levels: ₹3,000 and ₹2,912

Resistance Levels: ₹3,163 and ₹3,192

I believe that if shares of Dr. Lal Path Labs remain above ₹3,170, in the long term I see the stocks reaching ₹3,445.

Vijaya Diagnostic: Post-Breakout Continuation

Current Price: ₹1,185

Upside Potential: 8.2%

Support Levels: ₹1,149 and ₹1,075

Resistance Levels: ₹1,196, ₹1,240, and ₹1,282

A new breakout has been issued by Vijaya Diagnostic on the daily chart. I see the stock reaching ₹1,282 as long as price does not close below ₹1,149.

Rainbow Children’s Medicare: Strength Indications

Current Price: ₹1,620

Upside Potential: 6.8%

Support Levels: ₹1,570 and ₹1,485

Resistance Levels: ₹1,643 and ₹1,687

Shares in Rainbow Children ’s Medicare appear to be bullish and may reach ₹1,730 provided they hold above the support level of ₹1,570.

Narayana Hrudayalaya: Eyeing New Peaks

Current Price: ₹1,358

Upside Potential: 10.1%

Support Levels: ₹1,335 and ₹1,312

Resistance Levels: ₹1,410 and ₹1,452

Narayana Hrudayalaya shares have broken out and they can reach ₹1,495 if they are able to remain above the support set at ₹1,335.

Also Read : Indo Farm Equipment IPO: Listing on January 7th with Huge Investor Interest

Conclusion

Investors are advised to prepare themselves to open down as the HMPV effect entails a different set of volatility alongside the healthcare and diagnostics stocks which are now on a spree. It would be prudent to watch the technical levels of these stocks before making any investment decisions. The Indian stock market could be upbeat too considering the increasing trend and earnings in HMPV cases for the healthcare sector.

5 Healthcare Stocks to Monitor Considering the Increase in HMPV Cases: Is It Worth the Investment?
- Apollo Hospitals: Positioning for a Break Out
- Dr. Lal Path Labs: Going from Strength to Strength
- Vijaya Diagnostic: Post-Breakout Continuation
- Rainbow Children’s Medicare: Strength Indications
- Narayana Hrudayalaya: Eyeing New Peaks
Conclusion