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Cipla Technical Analysis #2: Buy | Target Rs 550 | Arijit Banerjee

OUR RECOMMENDATION

CMP#522.15
IdeaBUY
Buy Range520 – 525
Target550 – 560
StopLoss*500
Duration20 – 25 Trading Sessions
Potential Return^5 – 7%
CMP#IdeaBuy RangeTargetStopLoss*DurationPotential Return^
522.15BUY520 – 525550 – 56050020 – 25 Trading Sessions5 – 7%

# CMP on Nov 21, 2018
* Maintain recommended StopLoss by daily closing basis.
   Once 1st target hit, reset StopLoss at 536.
^ 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. In Q2FY19 the company has posted net income of Rs.3947.93 crore and Net Profit of Rs.366.13 crore

Stock Data
NSE CodeCIPLA
SectorNifty Pharma
52W High678.45
52W Low507.2
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.
  • Weekly price is just above the support. Based on historical evidence, go Long from here can be a good idea.
Cipla Weekly Chart
Cipla Weekly Chart

TECHNICAL OBSERVATIONS (DAILY)

  • RSI(14) is placed at an extremely oversold zone on the daily time frame indicating a short covering rally may be in the offing.
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

This research analysis is prepared by Arijit Banerjee, CMT, CFTe. An engineering graduate developed an early interest in Trading since the age of 20. He is a Chartered Market Technician (CMT) accredited by CMT Association USA, the leading global authority of Technical Analysis and also has been honoured by Certified Financial Technician (CFTe) from the International Federation of Technical Analysts (IFTA), USA. His contribution to the market research was recognized by SEBI, the Regulatory Body of Indian financial market and given him the registration number INH300006582 as a Research Analyst. Over the years, he has gained experience in Technical Analysis with a demonstrated history of working in different asset classes. Himself as a trader, he has trained and continues training novice and experienced traders to become successful, confident and profitable in the financial market.

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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