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Investors with a short-term perspective can consider selling the shares of Cipla. The stock fell 2 per cent on Monday. The upmove in the stock, which began from the May 7 low of ₹621 halted at ₹696. The range-bound movement thereafter, around its 55-day moving average at ₹688, suggests lack of buying interest in the market. The sharp 4 per cent fall over the last three trading sessions has increased the downside pressure and has turned the short-term outlook to bearish.
Immediate resistance is at ₹675 which could cap any immediate rally in the stock. The next key resistances are poised at ₹688 and ₹695. The stock can fall to ₹640 and ₹628 — the 200-day moving average support level in the upcoming sessions. Short-term traders can go short. Stop-loss can be kept at ₹667 for the target of ₹645. The downside pressure will ease only if the stock records a strong close above ₹688 — its 55-day moving average resistance.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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