Natco Pharma Breaks Out On Weekly Chart: SEBI RA Rajneesh Sharma Sees Over 40% Potential Upside

The company, which is developing the generic version of Ozempic with Mylan Pharmaceuticals, has a strong fundamental outlook supported by a bullish technical setup.

After months of consolidation, Natco Pharma is showing a strong technical breakout on the weekly chart.

The stock has broken above a descending trendline with a strong bullish candle, noted Rajneesh Sharma, a SEBI-registered analyst. The breakout is validated by a significant spike in volume - 4.53 million shares traded versus the average of 524K.

The relative strength index (RSI) is also showing a bullish divergence, where price made lower lows but RSI made higher lows, typically a reversal signal. Currently, RSI sits at 54.5 and a move above 60 would confirm renewed bullish momentum.

The analyst sees resistance between ₹1,150 - ₹1,250, a zone marked by past breakdowns and a channel boundary, Sharma said.

The analyst recommends accumulating on dips with a stop-loss at ₹800 for long-term investors. For positional traders, a breakout above resistance may open targets of ₹1,300 - ₹1,450, a 42.5% premium to Wednesday’s closing price of ₹1,017.50.

Despite a possible earnings dip in FY26, Natco remains fundamentally sound. The company is debt-free and cash-rich, with ROCE at 32.8% and ROE at 28%.

Looking ahead, Natco’s growth levers include the Indian launch of Ozempic, filings in niche therapies like Risdiplam, and investments in biotech innovation.

Natco Pharma shares closed 3.14% higher on Wednesday but have shed more than 26% year-to-date (YTD).

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