Stock of the week - Cipla Limited For Target Rs.1192 By GEPL Capital
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CIPLA
Observation
* CIPLA on the monthly time frame halted its up move after testing the life time high off 1005 in the month of September 2021.
* On the weekly chart we can see that the prices have been in a consolidation phase since April 2021 and have been moving in a range of 870 - 1005 levels.
* On the weekly chart we have shown the Bollinger bands, wherein we can see that the prices have managed to move and close above the 20 Week SMA for the 1st time in last 7 weeks.
* On the indicator front the RSI plotted on the weekly chart seems to have witnessed a range shift and moved above the 50 mark in the month of March 2020. Currently it seems to be moving higher after forming a bullish hinge near the 50 mark.
* Going ahead the Life Time high of 1005 is going to act as a trigger point, if the prices manage to sustain above the 1005 mark we might see the prices move higher towards the 1117 and 1192 (38.2% and 50% extension level of the rise from 355-997 projected from 870).
* On the downside the 870 is going to act as a strong support level, if the prices breach below this level, out bullish view will be negated and we might see the prices move lower towards 800-750 (Multiple touch point levels).
Inference & Expectations
* CIPLA from a long term perspective is showing positive signs.
* The technical parameters and the indicators mentioned above, point towards the possibility of increasing bullish momentum in the trend.
* We expect this momentum to take the prices towards 1117 followed by 1192 eventually.
* On the downside the 870 mark will act as a support level. If this zone is breached, our bullish view will be negated and we might see the prices move lower towards 750 mark.
* One can buy CIPLA at current levels with a target of 1117 and 1192 with a strict stop loss of 870 on closing basis.
Cipla Limited. LTP : 966.70 Target: ₹1192 Stop Loss : 870
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