Cipla

Investors with a short-term trading perspective can consider selling Cipla stock. It is clearly visible from the charts of Cipla that after recording a 52-week low of Rs 146 in late October, it was on a medium-term up move. This up move of the stock retraced approximately 61 per cent (fibonacci retracement level) of its prior downtrend, which began from the August high of Rs 243.

The stock encountered resistance at around Rs 205 for the second time in November. We notice that the stock has formed a bearish engulfing candlestick pattern at this significant resistance level recently, indicating selling pressure and resumption of the downtrend. Both daily and weekly relative strength indices are declining in the neutral region towards the bearish zone.

The stock is currently trading below its 21-day moving average. We are bearish on the stock from a short-term perspective. We anticipate the stock to decline until it hits our price target of Rs 164 in the approaching trading sessions. Traders with short-term perspective can sell the stock while maintaining a stop-loss at Rs 193.