Todays Pick

Cipla (₹811.4): Buy

Yoganand D BL Research Bureau | Updated on October 09, 2020

Investors with a short-term perspective can buy the stock of Cipla at current levels. The stock jumped 4.8 per cent accompanied by above-average volume on Thursday, decisively breaching a key resistance in the band between ₹800 and ₹805. This recent stock's rally has strengthened its short-term uptrend that has been in place since early September low at around ₹702.

The 50-day moving average had cushioned the stock at this level. The stock now trades well above the 21- and 50-day moving averages. The medium, as well as long-term trends, are also up for the stock. The daily relative strength index has entered the bullish zone from the neutral region while the weekly RSI continues to feature in the bullish zone. Both the daily and the weekly price rate of change indicators are hovering in the positive terrain implying buying interest.

Overall, the short-term outlook is bullish for the stock. It has the potential to trend upwards and reach the price targets of ₹845 and ₹860 in the coming trading sessions.

Traders with a short-term perspective can buy the stock with a stop-loss at ₹794.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

 

Published on October 09, 2020

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