Today’s market has been a good one for investors across the board. While there are many gainers giving investors a smile on their faces, one sector that has been making a huge noise after a long time is a diagnostic chain. The stocks in these sectors have been super underperformers this year. While their loosely correlated sector pharma space has also taken its toll in 2022, but these diagnostic stocks have disappointed investors big time.
However, now the tide seems to be turning in their favor. The two prominent companies in this space – Thyrocare and Metropolis are now coming on investors’ radar after falling to mouth-watering levels. A Breakout is witnessed in both of these counters in today’s session. Let us have a brief look at the charts of both of them.
Thyrocare Technologies Limited
Thyrocare Technologies Ltd (NS:) is a diagnostic chain company that offers a range of medical diagnostic tests and profiles of tests. The company has a market capitalization of INR 3,482 crores and its stock is 2.12 times more volatile than the . After drastically plunging from the 52-week high of INR 1,310.9 to the 52-week low of INR 600.9, marked on 29 August 2022, the stock now seems to be making a comeback.
Image Description: Weekly chart of Thyrocare Technologies with volume bars at the bottom
Image Source: Investing.com
After consolidating for more than 2 months in a tight range at the bottom which has formed a strong base, the stock has risen sharply from this base with volume expansion. Thyrocare shares are up 6.21% to INR 699.05 by 2:21 PM IST and have clearly surged past the immediate resistance of INR 660 and now seem to be heading towards the resistance of INR 900.
Metropolis Healthcare Limited
Competitor of Thyrocare, Metropolis Healthcare Ltd (NS:) is a INR 7,186 crores big diagnostic chain and has also taken a heavy beating, in sync with the sectoral weakness. The stock made a 52-week high of INR 3,579.9 and from there fell to a low of INR 1,355.5 on 23 August 2022, denoting a massive value erosion of over 62%.
Image Description: Weekly chart of Metropolis with volume bars at the bottom
Image Source: Investing.com
Now, as the sectoral strength is coming back, the stock is looking to pare some of the losses. After trading near the bottom for more than 2 months, today the stock rose 5.66% to INR 1,482.9 and might travel to INR 1,600 in the near future. The best part about both of these stocks is the favorable risk-to-reward ratio as both of them are rallying from the very bottom.
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