• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Brand Quest
• The New Manager

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth
• Events 2007

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

We recommend a buy in Cipla from a short-term perspective. From the charts of Cipla, we see that the stock has been consolidating sideways in a broad range between Rs 165 and Rs 220 since August 2007. However, the stock has been on a medium-term uptrend (within the broad sideways consolidation range) from its January low of Rs 161.

Currently, the stock is trading well above the 50 and 200-day moving averages. The daily momentum indicator is rising in the neutral region towards the bullish zone. The daily moving average convergence divergence is featuring in the positive region.

Considering the fact that the medium-term up trend-line is intact, we are bullish on the stock and we expect it to move up to our target price level of Rs 225 in the short-term.

Investors with a short-term perspective can buy the stock while keeping the stop loss at Rs 190.

More Stories on : Stocks | Recommendation | Pharmaceuticals | Cipla Ltd

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Procurement services’ demand rising: Logica

Copyright © 2008, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line