CIPLA - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:54 pm

Technical Rating: 3.8

📊 Chart Patterns: CIPLA is trading around its 200 DMA (1,517 ₹) and slightly below its 50 DMA (1,522 ₹), showing consolidation near key support levels. Current price (1,517 ₹) suggests indecision after testing highs (1,673 ₹).

📈 Moving Averages: Price ≈ 200 DMA and < 50 DMA → neutral to weak short-term bias, medium-term support intact. Sustaining above 1,522 ₹ would confirm strength.

📉 RSI: At 43.5, RSI is neutral-to-oversold, indicating limited buying strength but potential rebound.

📉 MACD: Negative (-7.85), confirming bearish crossover and weak short-term momentum.

📊 Bollinger Bands: Price near lower band, suggesting oversold conditions and possible mean reversion.

📊 Volume Trends: Current volume (11,78,332) is higher than 1-week average (9,68,344), showing increased activity but not strong breakout momentum.

📍 Support & Resistance:

- Strong support: 1,500 ₹ (200 DMA)

- Major support: 1,310 ₹ (recent low)

- Immediate resistance: 1,522 ₹ (50 DMA)

- Major resistance: 1,600–1,620 ₹

🚦 Momentum Signals: Short-term momentum is weak but oversold. Entry zone: 1,500–1,515 ₹ near support. Exit zone: 1,580–1,600 ₹ if resistance is tested. Breakout above 1,622–1,673 ₹ would confirm continuation of uptrend.

🔄 Trend Status: The stock is consolidating with mild bearish bias, awaiting breakout confirmation.

Positive

• Debt-free company (Debt-to-equity: 0.00).
• Strong ROCE (20.1%) and ROE (16.0%) indicate efficient capital use.
• EPS of 67.3 ₹ supports valuation comfort.
• DII holdings increased (+1.00%), showing domestic institutional support.

Limitation

• Stock trading below 50 DMA, showing short-term weakness.
• MACD negative, confirming bearish momentum.
• Quarterly PAT declined slightly (1,211 Cr. vs 1,303 Cr.).

Company Negative News

• FII holdings declined (-0.70%), showing reduced foreign investor confidence.
• Quarterly profit variation (+2.75%) is modest, reflecting limited earnings growth.

Company Positive News

• DII holdings increased (+1.00%), reflecting domestic institutional confidence.
• EPS of 67.3 ₹ remains strong, supporting valuation comfort.

Industry

• Industry PE at 30.6 is higher than CIPLA’s PE (23.6), showing relative undervaluation.
• Pharmaceutical industry benefits from consistent demand and defensive characteristics, though regulatory risks persist.

Conclusion

⚖️ CIPLA is consolidating near its 200 DMA with mild bearish bias. Entry near 1,500–1,515 ₹ could be considered for short-term gains, with exit around 1,580–1,600 ₹. A breakout above 1,622–1,673 ₹ would confirm continuation of the uptrend. Strong fundamentals and debt-free status support long-term holding, but short-term technical weakness and modest profit growth remain concerns.