CIPLA - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 4.1
| Stock Code | CIPLA | Market Cap | 1,05,787 Cr. | Current Price | 1,310 ₹ | High / Low | 1,673 ₹ |
| Stock P/E | 23.1 | Book Value | 412 ₹ | Dividend Yield | 0.99 % | ROCE | 20.1 % |
| ROE | 16.0 % | Face Value | 2.00 ₹ | DMA 50 | 1,288 ₹ | DMA 200 | 1,401 ₹ |
| Chg in FII Hold | -1.38 % | Chg in DII Hold | 1.26 % | PAT Qtr | 822 Cr. | PAT Prev Qtr | 1,211 Cr. |
| RSI | 60.9 | MACD | 11.2 | Volume | 14,47,981 | Avg Vol 1Wk | 14,47,486 |
| Low price | 1,166 ₹ | High price | 1,673 ₹ | PEG Ratio | 1.26 | Debt to equity | 0.00 |
| 52w Index | 28.4 % | Qtr Profit Var | -42.9 % | EPS | 57.2 ₹ | Industry PE | 30.1 |
📊 CIPLA is trading at ₹1,310, above its 50 DMA (₹1,288) but below its 200 DMA (₹1,401), reflecting short-term strength but medium-term resistance. RSI at 60.9 indicates neutral-to-bullish momentum, while MACD at 11.2 shows a mild positive crossover. Bollinger Bands suggest price stabilizing in the mid-range. Volume (14,47,981) is in line with the weekly average (14,47,486), confirming steady participation. Overall, the stock is consolidating with a bullish bias.
💡 Optimal Entry Zone: ₹1,280–1,310 (near 50 DMA support).
📈 Exit Zone: ₹1,380–1,400 (resistance near 200 DMA), with extended breakout potential toward ₹1,650–1,673 (52-week high).
🔎 Trend Status: Consolidating with bullish undertone; breakout possible if price sustains above 1,400 with stronger volume.
✅ Positive
- Strong ROCE (20.1%) and ROE (16.0%) highlight efficiency.
- Debt-free balance sheet (Debt-to-equity: 0.00).
- EPS of ₹57.2 supports valuation strength.
- DII holdings increased (+1.26%), showing domestic institutional support.
⚠️ Limitation
- Quarterly PAT declined from ₹1,211 Cr. to ₹822 Cr. (-42.9%).
- Price below 200 DMA signals medium-term weakness.
- FII holdings decreased (-1.38%), showing reduced foreign investor confidence.
- PEG ratio of 1.26 suggests fair but not cheap growth valuation.
📉 Company Negative News
- Quarterly profit decline raises concerns about earnings stability.
- Reduced foreign institutional confidence with FII holdings down.
📈 Company Positive News
- DII holdings increased (+1.26%), reflecting domestic institutional support.
- Strong efficiency metrics (ROCE and ROE) continue to attract long-term investors.
🏭 Industry
- Industry PE is 30.1, higher than CIPLA’s PE of 23.1, suggesting undervaluation.
- Pharmaceutical sector remains supported by demand for generics and specialty formulations.
🔎 Conclusion
CIPLA is consolidating near support levels with bullish signals from RSI and MACD but faces resistance at the 200 DMA. Entry near ₹1,280–1,310 offers a favorable setup, while exit near ₹1,380–1,400 is prudent unless momentum drives a breakout toward ₹1,650–1,673. Long-term investors benefit from debt-free status and efficiency metrics, but short-term traders should monitor earnings pressure and institutional sentiment closely.