Shall I enter Cipla as it has fallen drastically in the last couple of months?
- Amit Javiya
AVOID BUYING CIPLA FOR NOW.
Cipla Ltd is currently trading at 527.75. Its 52-week high/low stand at Rs 678/Rs 503.95 made on September 19, 2018 and December 10, 2018, respectively. Since last three years, the stock has been trading in a narrow consolidation. After registering its 52-week high, the stock has fallen sharply with high volumes, making series of lower lows. Considering the daily time frame, the stock is trading below its crucial long term moving average, i.e. 200-day exponential moving average. The 14-period day RSI is quoting around 44.20 and it has not able to cross above the 60 mark since September 26, 2018. However, the volumes and oscillators are too poor to suggest any momentum, for now. Considering all the above factors, we recommend you to avoid buying Cipla for now.