CIPLA - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

Technical Rating: 3.3

📉 CIPLA is currently in a reversing phase, showing signs of short-term weakness despite strong long-term fundamentals.

📊 Technical Overview

• Trend Status: Reversing — price has pulled back from its 52-week high of ₹1,673 and is now below both 50 DMA and 200 DMA.
• Moving Averages: Current price (₹1,512) is below 50 DMA (₹1,553) and slightly below 200 DMA (₹1,519), indicating bearish sentiment.
• RSI (39.1): Near oversold territory, suggesting weakening momentum and potential for a bounce.
• MACD (3.80): Slightly positive, but not strong enough to confirm bullish reversal.
• Bollinger Bands: Price near lower band, indicating volatility and possible support zone.
• Volume: Above average (34.63L vs 25.30L), showing active trading interest despite weakness.

📌 Entry & Exit Zones

• Support Zone: ₹1,470–₹1,490 — potential entry zone if reversal signals strengthen.
• Resistance Zone: ₹1,550–₹1,580 — ideal for exit or partial profit booking.
• Breakout Level: ₹1,600 — crossing this could signal trend recovery.

✅ Positive

• Strong ROCE (20.1%) and ROE (16.0%) reflect efficient capital use.
• Zero debt and consistent dividend payout (0.87%).
• EPS of ₹67.3 and stable quarterly profit.

⚠️ Limitation

• Price trading below key moving averages with weak RSI.
• Quarterly PAT declined slightly from ₹1,303 Cr to ₹1,211 Cr.
• PEG ratio (1.28) suggests moderate valuation concerns.

📰 Company Negative News

• Decline in FII holdings (-0.70%) may reflect cautious foreign sentiment.

🌟 Company Positive News

• Strong fundamentals and consistent profitability.
• Positive DII holding change (+1.00%) shows domestic institutional confidence.

🏭 Industry

• Operates in pharmaceuticals, a defensive sector with stable demand and regulatory sensitivity.
• Industry P/E (33.1) is higher than the stock’s (23.5), suggesting potential undervaluation.

🧾 Conclusion

• CIPLA is technically weak in the short term but backed by strong fundamentals.
• Entry near ₹1,470–₹1,490 is favorable if reversal signs emerge; watch for breakout above ₹1,600.
• Long-term investors may hold for stability and growth; short-term traders should monitor RSI and resistance levels.