ICICIdirect recommends 'Buy' on Glenmark Pharma in the range of Rs 731-744 with target Rs 860 in three months time.

Commenting on the investment rationale, the stock broker said,"Since the start of August, the Nifty has moved up almost 8% from 7,550 to 8,140. This up move was not only supported by the high beta space but also by stocks from the IT and pharma space. In the middle of August, the pharma space has been continuously attracting money flows. As the rupee continues to see a gradual depreciation, this sector continues to be in focus.

We expect stock to display a strong price performance from current levels. It generates 75% revenues from exports. In the stock future segment, the stock has been constantly moving on the back of long build-up in the last couple of months. In July, the open interest in the stock doubled near the average price of Rs 575."

"We believe these were long positions. In the August series again the stock witnessed long addition near Rs 730, post which it remained sideways for a few trading sessions and started moving up of late. Noteworthy high delivery based buying was observed in Glenmark Pharma in the range of Rs 660-680 in July. After a brief consolidation near these levels, it moved up sharply indicating strong hands are getting active in the stock" it said.

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