CIPLA - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Swing Trade Rating: 3.4

📊 Analysis Summary

CIPLA is currently technically overbought and trading near its recent highs, which limits short-term upside potential for a swing trade. While the fundamentals are strong and long-term prospects are solid, the current setup favors profit booking rather than fresh entry.

🔍 Technical Indicators

RSI (71.1): Overbought — risk of short-term pullback.

MACD (10.3): Bullish — momentum is strong but may be peaking.

Price vs DMA

Current Price (₹1,574) is above both 50 DMA (₹1,499) and 200 DMA (₹1,488) — strong uptrend.

Volume: Below weekly average — waning interest at higher levels.

📈 Fundamental Snapshot

P/E (23.6) vs Industry PE (34.0): Undervalued relative to peers.

PEG Ratio (0.92): Reasonable — growth is fairly priced.

ROE (17.8%) & ROCE (22.7%): Excellent efficiency and profitability.

EPS (₹66.8) vs Price (₹1,574): Fair valuation.

Qtr Profit Growth (+9.88%): Moderate earnings momentum.

FII Holding ↓ (-1.04%): Foreign investors trimming — slightly bearish.

DII Holding ↑ (1.09%): Domestic accumulation — supportive.

Debt to Equity (0.01): Virtually debt-free — very strong balance sheet.

✅ Entry Strategy (If Not Holding)

Avoid entry at current levels due to overbought RSI.

Optimal Entry Price: ₹1,500–₹1,520 range, near 50 DMA support.

Wait for RSI to drop below 60 and MACD to flatten before considering entry.

🚪 Exit Strategy (If Already Holding)

Exit near ₹1,680–₹1,700, close to 52-week high.

If price dips below ₹1,540, consider stop-loss at ₹1,520 to protect gains.

⚖️ Final Verdict

CIPLA is a fundamentally strong but technically stretched stock. Not ideal for fresh swing entry at current levels. Best suited for profit booking if already held, or wait for a dip before re-entry.

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