CIPLA - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.5
| Stock Code | CIPLA | Market Cap | 1,02,479 Cr. | Current Price | 1,268 ₹ | High / Low | 1,673 ₹ |
| Stock P/E | 22.4 | Book Value | 412 ₹ | Dividend Yield | 1.02 % | ROCE | 20.1 % |
| ROE | 16.0 % | Face Value | 2.00 ₹ | DMA 50 | 1,359 ₹ | DMA 200 | 1,450 ₹ |
| Chg in FII Hold | -0.61 % | Chg in DII Hold | 0.47 % | PAT Qtr | 822 Cr. | PAT Prev Qtr | 1,211 Cr. |
| RSI | 29.6 | MACD | -17.8 | Volume | 22,73,484 | Avg Vol 1Wk | 17,59,305 |
| Low price | 1,265 ₹ | High price | 1,673 ₹ | PEG Ratio | 1.22 | Debt to equity | 0.00 |
| 52w Index | 0.88 % | Qtr Profit Var | -42.9 % | EPS | 57.2 ₹ | Industry PE | 27.6 |
📈 Chart & Trend: CIPLA is trading at ₹1,268, below both its 50 DMA (₹1,359) and 200 DMA (₹1,450). This indicates short-term and medium-term weakness, with the stock trending downward.
📊 Momentum Indicators:
- RSI at 29.6 suggests oversold conditions, potential for rebound.
- MACD at -17.8 shows bearish crossover, confirming short-term weakness.
- Bollinger Bands: Price near lower band, indicating possible mean reversion.
- Volume: Current volume (22.7 lakh) is higher than 1-week average (17.6 lakh), showing strong participation despite weakness.
🔑 Support & Resistance:
- Support zone: ₹1,260–₹1,270
- Resistance zone: ₹1,350–₹1,360 (near 50 DMA)
- Breakout resistance: ₹1,440–₹1,450 (near 200 DMA)
- Long-term support: ₹1,265
📌 Entry & Exit Zones:
- Entry: ₹1,260–₹1,270 (near support)
- Exit: ₹1,350–₹1,440 (resistance zone)
- Stop-loss: ₹1,240
📉 Trend Status: Strong bearish consolidation. Needs a breakout above ₹1,359–₹1,450 to confirm reversal and trend continuation.
Positive
- ROCE at 20.1% and ROE at 16% reflect strong operational and shareholder returns.
- Debt-to-equity ratio of 0.00 indicates a debt-free balance sheet.
- EPS of ₹57.2 supports earnings visibility.
- DII holdings increased by 0.47%, showing domestic investor confidence.
Limitation
- Stock trading below both 50 DMA and 200 DMA indicates weakness.
- Quarterly PAT declined sharply (₹822 Cr vs ₹1,211 Cr), showing earnings pressure.
- FII holdings decreased by 0.61%, showing reduced foreign confidence.
- PEG ratio of 1.22 suggests moderate valuation relative to growth.
Company Negative News
- No major recent negative news reported, but earnings decline and reduced FII holdings are concerns.
Company Positive News
- Debt-free status strengthens financial stability.
- Strong ROCE and ROE highlight efficient capital use.
- DII inflows indicate growing domestic confidence.
Industry
- Industry PE at 27.6 vs stock PE at 22.4 shows CIPLA trades at a discount.
- Pharma sector remains resilient with long-term demand drivers, though margin pressures persist.
Conclusion
⚡ CIPLA is in a bearish consolidation phase, trading below key moving averages. Entry near ₹1,260–₹1,270 offers margin of safety, with exit targets around ₹1,350–₹1,440. Strong fundamentals and debt-free status support long-term prospects, but sharp earnings decline and weak momentum indicators pose short-term risks.
Would you like me to extend this into a peer benchmarking overlay comparing CIPLA with Sun Pharma, Dr. Reddy’s, and Lupin to highlight relative strength, valuation gaps, and sector rotation opportunities?