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Cipla Technical Analysis #31: Buy | Target Rs 576 | Arijit Banerjee

OUR RECOMMENDATION

CMP#547.55
IdeaBUY
Buy Range547 – 552
Target576 – 605
StopLoss*510
Duration25 – 30 Trading Sessions
Potential Return^10 – 13%
CMP#IdeaBuy RangeTargetStopLoss*DurationPotential Return^
547.55BUY547 – 552576 – 60551025 – 30 Trading Sessions5 – 10%

# CMP on Mar 06, 2019
* Maintain recommended StopLoss by daily closing basis.
   Once 1st target hit, reset StopLoss at 562.
^ The returns are calculated based on CMP#

COMPANY OVERVIEW

Cipla Limited, together with its subsidiaries is a leading global pharmaceutical company, dedicated to high-quality, branded and generic medicines. Cipla maintains its focus on three main therapeutic areas: respiratory, urology, and antiretroviral. Based in Mumbai, India the company exports its products to Africa, the Middle East, Latin America, Asia and other continents. Net profit dipped 20 percent year-on-year to Rs 323 crore.

Stock Data
NSE CodeCIPLA
SectorNifty Pharma
52W High678.45
52W Low483.75
Face Value2
Relative Performance_Cipla vs Nifty Pharma

TECHNICAL OBSERVATIONS (WEEKLY)

  • As we see in the Weekly chart, the long term trend is positive since 2016. There is a steady support baseline which is moving upwards along with price rise.
  • There is a false breakout in December 2018 and the stock managed to take it’s position again for last 4 weeks. This indicates that the stock looks set to continue the next leg of its uptrend.
Cipla Weekly Chart
Cipla Weekly Chart

TECHNICAL OBSERVATIONS (DAILY)

  • Higher Tops and Higher Bottoms at Daily Charts.
  • Last few days stock is trading above the 15 days MA and recent closing neat MA m
  • Recent price movement near the Upper Bollinger Band showing confidence in my view.
Cipla Daily Chart
Cipla Daily Chart

MONEY MANAGEMENT AND TRADING RULES

1)  It’s advisable not to enter/exit beyond the recommended range.
2)  Strictly follow the StopLoss as mentioned. Honour it.
3)  Use trailing StopLoss to retain profits.
4)  Diversify trading capital into our other technical recommendations.
5)  Risk only the money what you can afford to lose. Hedge accordingly.

ANALYST SUMMARY

The research analysis is prepared by Arijit Banerjee, CMT, CFTe. He is a veteran trader and an active investor having in-depth knowledge in financial market research, advanced technical analysis, market cycle, algorithmic trading and portfolio management. Arijit is a Chartered Market Technician (CMT) accredited by CMT Association USA, the leading global authority of Technical Analysis and has been honoured by Certified Financial Technician (CFTe) from the International Federation of Technical Analysts, USA. SEBI, the regulatory body of Indian financial market also recognizes him as a Research Analyst (INH300006582).

Disclosure

The views expressed herein are based solely on information available publicly/internal data/other sources believed to be reliable, but is not necessarily all-inclusive and is not guaranteed as to accuracy. The recommendations provided herein is solely for informational purposes and are not intended to be and must not be taken alone as the basis for an investment/trading decision. Trading and investing are subject to market risk and the securities discussed and opinions expressed herein may not be suitable for all investors. To read the full disclosure, please click here.

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