Cipla CMP 880 - one of the three top weighted stocks of nifty pharma contributing 12.4% followed by sunpharma (26%) and Dr. Reddy Lab (13%).
After heavy correction from all time high of 1185 right now its trading near 880 levels on 03/03/2023.
One little bounce of 5% can be seen from current levels of 880 , till 920. But the quaterly demand zones lies at 810 to 710 . weekly demand zone lies inside quaterly demand zone at 800 to 750.
Nifty Pharma current level 11800. Complete breakdown of trendline support levels of 12100 on weekly time frame. Monthly demand zone for nifty pharma is at 10400 levels ( 12% away from current levels).
Assuming that cipla also shall correct till 12% from current levels price we get is 775. Luckily this 775 price falls into the quaterly demand zone & weekly demand zone as shown in charts. Also there is support of previous high of 750 levels. In addition to that at 755 there od quaterly mean support.
At this pricing all odds are in our favour. Also its running undervalued at CMP , looking at future growth of the company.
So for investment purpose case study goes like we shall start accumulating from 810 levels till 710 in the ratio of 10% at 810, 60% at 770 and 30% at 755. Hence our avg price of entry will be arounf 770 levels. As its an investment idea there are no sl for that but still we can plan sl of 700 depending upon price action and on monthly closing basis .
Avg Entry Price : 770
Sl : 700 ( montly closing basis)
Tgt : 1000-1050, 1200, 1500
After heavy correction from all time high of 1185 right now its trading near 880 levels on 03/03/2023.
One little bounce of 5% can be seen from current levels of 880 , till 920. But the quaterly demand zones lies at 810 to 710 . weekly demand zone lies inside quaterly demand zone at 800 to 750.
Nifty Pharma current level 11800. Complete breakdown of trendline support levels of 12100 on weekly time frame. Monthly demand zone for nifty pharma is at 10400 levels ( 12% away from current levels).
Assuming that cipla also shall correct till 12% from current levels price we get is 775. Luckily this 775 price falls into the quaterly demand zone & weekly demand zone as shown in charts. Also there is support of previous high of 750 levels. In addition to that at 755 there od quaterly mean support.
At this pricing all odds are in our favour. Also its running undervalued at CMP , looking at future growth of the company.
So for investment purpose case study goes like we shall start accumulating from 810 levels till 710 in the ratio of 10% at 810, 60% at 770 and 30% at 755. Hence our avg price of entry will be arounf 770 levels. As its an investment idea there are no sl for that but still we can plan sl of 700 depending upon price action and on monthly closing basis .
Avg Entry Price : 770
Sl : 700 ( montly closing basis)
Tgt : 1000-1050, 1200, 1500