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CIPLA - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.8
| Stock Code | CIPLA | Market Cap | 1,06,062 Cr. | Current Price | 1,313 ₹ | High / Low | 1,673 ₹ |
| Stock P/E | 23.2 | Book Value | 412 ₹ | Dividend Yield | 0.99 % | ROCE | 20.1 % |
| ROE | 16.0 % | Face Value | 2.00 ₹ | DMA 50 | 1,448 ₹ | DMA 200 | 1,495 ₹ |
| Chg in FII Hold | -0.61 % | Chg in DII Hold | 0.47 % | PAT Qtr | 822 Cr. | PAT Prev Qtr | 1,211 Cr. |
| RSI | 25.5 | MACD | -47.3 | Volume | 11,98,384 | Avg Vol 1Wk | 23,08,217 |
| Low price | 1,282 ₹ | High price | 1,673 ₹ | PEG Ratio | 1.27 | Debt to equity | 0.00 |
| 52w Index | 8.00 % | Qtr Profit Var | -42.9 % | EPS | 57.2 ₹ | Industry PE | 29.1 |
📊 Technical Analysis
- Chart Patterns: CIPLA has corrected from its 52-week high of 1,673 ₹ and is consolidating near 1,313 ₹.
- Moving Averages: Price (1,313 ₹) is below both 50 DMA (1,448 ₹) and 200 DMA (1,495 ₹), confirming bearish momentum.
- RSI: At 25.5, oversold zone — potential rebound possible.
- MACD: Negative (-47.3), reinforcing bearish sentiment.
- Bollinger Bands: Price near lower band, suggesting possible support zone.
- Volume Trends: Current volume (11.9 lakh) below 1-week average (23.0 lakh), showing weak participation.
📈 Momentum & Signals
- Short-term Momentum: Weak due to negative MACD and oversold RSI.
- Support Levels: 1,300 ₹ (near-term), 1,282 ₹ (major support).
- Resistance Levels: 1,350 ₹ (short-term), 1,448 ₹ (50 DMA).
- Optimal Entry Zone: 1,290–1,310 ₹ (close to support).
- Optimal Exit Zone: 1,350–1,420 ₹ (near resistance).
- Trend Status: Consolidating with bearish bias, oversold signals suggest possible reversal.
✅ Positive
- EPS of 57.2 ₹ supports strong earnings visibility.
- ROCE (20.1%) and ROE (16.0%) highlight efficient capital usage.
- DII holdings increased (+0.47%), showing domestic institutional support.
- Debt-free balance sheet (Debt-to-equity 0.00) reduces financial risk.
⚠️ Limitation
- P/E (23.2) below industry PE (29.1), but valuation premium remains moderate.
- Quarterly PAT declined (822 Cr vs 1,211 Cr), showing earnings pressure.
- Weak trading volume compared to average, reducing conviction in price moves.
📉 Company Negative News
- FII holdings decreased (-0.61%), showing reduced foreign investor confidence.
- Quarterly profit variation (-42.9%) highlights earnings slowdown.
📈 Company Positive News
- Strong fundamentals with high ROCE and ROE.
- Stock trading near lower end of 52-week range (8.0%), offering potential value entry.
🏭 Industry
- Pharmaceutical sector supported by global healthcare demand and exports.
- Industry PE at 29.1 vs stock PE at 23.2 — stock trades at discount valuation.
🔎 Conclusion
- CIPLA is consolidating with short-term bearish signals but oversold RSI suggests potential rebound.
- Best entry near 1,290–1,310 ₹, exit near 1,350–1,420 ₹ unless breakout above 1,448 ₹ occurs.
- Medium-term outlook cautious due to earnings slowdown, though strong fundamentals and debt-free status provide support.