Cipla’s stock is in a long-term uptrend. But it experienced a sell-off this month after finding resistance at ₹1,500 and lost about 6 per cent. However, the stock found a support at ₹1,340 where a rising trendline coincides. This is a good base against which the price recovered in the past few sessions.
The price action on the daily chart hints that Cipla’s stock could appreciate further. We expect the price to touch ₹1,500, the nearest notable resistance, in the short term. So, traders can buy this stock now at ₹1,407 and add more shares to your holdings if the price dips to ₹1,370. Place initial stop-loss at ₹1,325. When the stock rallies past ₹1,450, modify the stop-loss to ₹1,410. Liquidate the longs at ₹1,500.
Today’s Stock Recommendation: 30th April 2024
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)