WOCKHARDT SHARES JUMP 76% IN 13 SESSIONS — WHAT ARE THE KEY LEVELS AND TRIGGERS?

Shares of drug manufacturer Wockhardt Ltd. scaled a 52-week high of Rs 995 on July 4, jumping as much as 12%. Wockhardt shares also rose for the 13th day in a row on Thursday. With today's surge, the market capitalisation of Wockhardt is also nearing ₹14,000 crore.

The stock has more than tripled from its 52-week low of ₹213.25, which it fell to on October 26 last year.

Bullishness over Wockhardt's stems from two of its promising antibiotics, which are heading closer to a probable launch in India.

The drugmaker antibiotic Nafithromycin, used to treat pneumonia is awaiting approval from the Drug Controller General of India (DCGI) for Nafithromycin and would be launched in a couple of months after getting a greenlight.

Nafithromycin has the potential to seize market share from Azithromycin due to its superior results and quicker efficacy. The company has secured two patents for this drug, expiring in 2031 and 2037, providing ample time to capitalise on its robust R&D efforts.

Additionally, another investigational antibiotic drug Zaynich has also shown encouraging results in its phase 3 trails.

While Nafithromycin is expected to launch in the current fiscal, targeting a market size of hundreds of crores over the next three to five years, phase 3 trials for Zaynich are anticipated to conclude by the last quarter of the current financial year.

Wockhardt aims to launch Zaynich by FY26, contingent upon successful phase 3 trials. It aims to enter a market valued at $1.5 billion annually in developed countries and $263 million in developing countries.

On the charts, the stock's 14-day relative strength index (RSI) stood at 90.7, suggesting the counter is strongly overbought. This implies that stock may show pullback. A level below 30 is defined as oversold while a value above 70 is considered overbought.

Wockhardt stock has a one-year beta of 1.2, indicating high volatility during the same period.

The counter was seen trading higher the 5-day, 10-day, 20-, 30-, 50-, 100-, 150- and 200-day simple moving averages (SMAs).

The stock, over the last 12 months, has gained nearly 300%. Based on the March 2024 shareholding pattern, promoters of Wockhardt held a 51.60% stake in the company.

2024-07-04T08:53:59Z dg43tfdfdgfd