The stocks in this sector have currently gone up quite a bit and investors must wait for some more time before picking up long positions in the stock. Allow this stock to pull back towards their respective support levels and get into them at the right price with a strict stop loss.

Abbott Labs
Abbott Labs has been trading just above the 30 WMA in the past few weeks and the 30 WMA has flattened out suggesting that the stock could be bottoming out. A close above the 300 level with a spurt in volume will result in the stock moving to higher levels and investors must pick it up on a breakout from the current sideways mode. Do not get into the stock in the current mode as it may continue to drift sideways for a couple of weeks and investors could get frustrated. As the stock is drifting sideways above its 30 WMA, the relative strength line is also moving in the same direction, just above its trigger line.

E.Merck
E.Merck is one of the stock which is already in a major uptrend as the stock has exhibited ascending intermediate tops and bottoms and is now well above its 30 WMA. In the past two months the stock took a support at the 30 WMA and after having consolidated, it zoomed out of this sideways mode and is now in a major uptrend. The breakout of the sideways mode has taken place with a spurt in volume which is a very bullish sign and traders who are holding on to the long positions must convert the these positions into investments while more long positions in the stock can be added when the stock pulls back towards the 400 support level.

German Remedies
German Remedies has moved past its earlier intermediate top and is in a major uptrend. The stock is still below its 30 WMA and will have to move past this long term moving average to move up. The weekly momentum indicators for the stock has turned bullish suggesting that the selling pressure in has reduced and higher levels in will be seen soon. The relative strength line for the stock has moved very close to its trigger line and once it moves above its 30 WMA, the relative strength line will also move up.

Glaxo
Glaxo is in a major uptrend as the stock is trading above its 30 WMA and has exhibited ascending intermediate tops and bottoms. The sideways consolidation of the stock above the 30 WMA is a bullish sign and a breakout of the stock from this move with a spurt in volume will result in higher levels. The trading volume of the stock has also improved in the past few weeks and investors must get into it when its breaks out of the current move. The relative strength line for the stock has just moved above its trigger line suggesting that it is performing better than the Sensex.

Hoechst Marion
Hoechst Marion has bottomed out and has gone into a major uptrend by closing above its six-month sideways move. The stock is also above its 30 WMA and, like majority of the stocks in this sector, it will be headed higher in the next intermediate rise. Investors must pick it up when it pulls back towards its strong support of 480 or its 30 WMA. The 30 WMA has been moving sideways and once the stock exhibits higher levels, the 30 WMA will also move higher.

As majority of the stocks in the sector seem to have bottomed out and other stocks are in the process, investors must get into the sector in the intermediate term correction in the next few weeks.

Pfizer
Pfizer was the first stock in the MNC pharma sector, which has gone into a major uptrend as the stock closed above its earlier intermediate top and traded above its 30 WMA since February 2000. The stock recently broke out of the very strong resistance of650 and with a spurt in volume and is now headed higher. Investors must hold on to the long positions while any pull back towards the 650 level must be used by investors to add to their long positions. Once the stock crosses the 752 levels, there will be very less selling pressure which will be seen in it. This will result in the stock exhibiting a good upward momentum.