EquityPandit’s Outlook for Cipla for the week (August 31, 2015 – September 04, 2015):
CIPLA closed the week on negative note losing more than 5%.
As we have mentioned last week that the stock has formed a Bearish engulfing pattern on weekly charts and the stock has to move above the levels of 740 to negate this pattern. Support for the stock lies in the zone of 660 where 100 and 200 Daily SMA are positioned. Below which the stock can drift to the levels of 620 where long term support for the stock is lying. The stock hit a low of 606 and bounce back to the levels of 660 during the week.
The stock is trading near to strong support zone of 660 where 100 and 200 Daily SMA are positioned. If the stock breaks below the levels of 660 the stock can drift to the levels of 620 where long term support for the stock is lying.
Resistance for the stock lies in the zone of 680 above which the stock can move to the levels of 700 to 710 from where the stock has broken out.
Broad range for the stock is seen in the range of 600 – 620 on downside to 710 – 720 on upside.