Cipla

We recommend a buy in Cipla. From the weekly chart of Cipla, we note that it was on a long-term downtrend since its all-time high of Rs 304, made in April 2006. However, the stock found support at Rs 165 in late August 2007 (which coincides with the 200-week moving average line) and with this the long-term downtrend got arrested. Since then the stock has been on an up move. We note that the stock has moved above the 200-day moving average line and a key resistance of Rs 200 recently on good volumes. The daily momentum indicator is featuring in the bullish zone and the weekly momentum indicator is on the verge of entering this zone. The immediate support for the stock is at Rs 180 and the next support is pegged at Rs 165. Taking cues from the above mentioned factors, we direct the investors to buy the stock at current market price. We expect the stock to move up to Rs 240 in the short-term. The short-term traders can buy the stock with a stop loss at Rs 190.

Via Businessline