Trade Idea of The Day - Cipla Ltd Target Rs. 40 - Religare Broking Ltd
Cipla Ltd
BUY 30 JUN 1400 CALL SELL 30 JUN 1450 CALL Entry Range 18 – 20 Target 40 Stop Loss 10
Rationale
• On the weekly timeframe CIPLA has staged a strong recovery from the 20-WEMA and has reclaimed its immediate hurdle of 1400, indicating a potential shift in the medium-term trend. The formation of higher highs and higher lows suggests improving bullish momentum.
• 14-day RSI has rebounded and hover above the 50 mark, reflecting renewed buying interest. Additionally, the MACD has witnessed a bullish crossover with expanding positive histogram bars, signalling strengthening upward momentum.
• From the technical prospective 1350-1360 zone now acts as an immediate support area, while the stock faces immediate hurdle near 1450. A decisive breakout above this hurdle extend the trend towards 1500 zone.
• For the near term one can initiate buying in the bull call spread to capitalize this bullish reversal opportunities, as long as prices sustains above the 1400 mark
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