CIPLA - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 4.2
| Stock Code | CIPLA | Market Cap | 1,14,700 Cr. | Current Price | 1,419 ₹ | High / Low | 1,673 ₹ |
| Stock P/E | 31.0 | Book Value | 423 ₹ | Dividend Yield | 0.92 % | ROCE | 14.7 % |
| ROE | 11.2 % | Face Value | 2.00 ₹ | DMA 50 | 1,338 ₹ | DMA 200 | 1,398 ₹ |
| Chg in FII Hold | -1.38 % | Chg in DII Hold | 1.26 % | PAT Qtr | 385 Cr. | PAT Prev Qtr | 822 Cr. |
| RSI | 64.9 | MACD | 34.9 | Volume | 9,79,619 | Avg Vol 1Wk | 10,36,088 |
| Low price | 1,166 ₹ | High price | 1,673 ₹ | PEG Ratio | 2.36 | Debt to equity | 0.00 |
| 52w Index | 50.0 % | Qtr Profit Var | -69.1 % | EPS | 43.5 ₹ | Industry PE | 31.6 |
📊 Chart Patterns & Trend: CIPLA is trending upward after a recovery from its 1,166 ₹ low. Current price (1,419 ₹) is above both 50 DMA (1,338 ₹) and 200 DMA (1,398 ₹), confirming bullish alignment. Resistance lies near 1,450–1,470 ₹, with major resistance at 1,673 ₹. Support is seen around 1,380–1,400 ₹. Trendlines suggest continuation of the uptrend with strong momentum.
📈 Moving Averages: Price above both 50 DMA and 200 DMA indicates strong bullish momentum.
📉 RSI: At 64.9, RSI is moderately bullish, approaching overbought territory.
📈 MACD: Strongly positive (34.9), confirming bullish momentum.
📊 Bollinger Bands: Price is near the upper band, suggesting strong buying pressure with potential short-term consolidation.
📊 Volume Trends: Current volume (9,79,619) is slightly below the 1-week average (10,36,088), showing moderate participation.
💡 Momentum Signals: Bullish bias. A breakout above 1,450–1,470 ₹ could trigger upside toward 1,600–1,673 ₹, while support lies near 1,380–1,400 ₹.
🎯 Entry Zone: 1,380–1,400 ₹ (support region).
🎯 Exit Zone: 1,450–1,470 ₹ (resistance region; extended target 1,600–1,673 ₹).
📌 Status: Trending upward with bullish bias.
Positive
✔ EPS of 43.5 ₹ supports valuation strength.
✔ Debt-free balance sheet (Debt-to-equity: 0.00).
✔ Price trading above both 50 DMA and 200 DMA.
✔ DII holdings increased (+1.26%), showing domestic institutional support.
Limitation
⚠ RSI near overbought zone (64.9).
⚠ Quarterly PAT declined sharply (385 Cr. vs 822 Cr.).
⚠ FII holdings decreased (-1.38%), showing reduced foreign investor confidence.
⚠ PEG ratio of 2.36 indicates expensive growth.
Company Negative News
⚠ Quarterly profit variation (-69.1%) highlights earnings weakness.
⚠ Foreign institutional outflows reflect weaker sentiment.
Company Positive News
✔ Domestic institutional inflows (+1.26%) show confidence.
✔ Strong technical momentum with MACD positive and price above DMA levels.
✔ Dividend yield of 0.92% adds investor appeal.
Industry
🏥 Pharmaceutical sector benefits from global demand and healthcare expansion.
📈 Industry PE (31.6) is close to CIPLA’s PE (31.0), suggesting fair valuation relative to peers.
Conclusion
📌 CIPLA is trending upward with strong bullish momentum, supported by technicals. Entry near 1,380–1,400 ₹ offers favorable risk-reward, while exits near 1,450–1,470 ₹ are prudent unless momentum drives a breakout toward 1,600–1,673 ₹. Long-term investors may hold for sector strength, while traders should monitor RSI and earnings volatility for sustained momentum.
Would you like me to refine this into a swing trade setup with sector overlays, or focus on intraday trading signals for sharper entry/exit timing?