Extremely favourable risk reward trade. Stoploss at 503, just above 200 week moving average. Extremely important level for any stock. It has broken the resistance level of 500 and may soon breach 100 DMA.
First target is 540 and second target is 576.
This trade does derive comfort from the general breakout of pharma sector in India.
CIPLA to GO LONG -
Since CIPLA also moves a bit as per Nifty, we can expect a small upward move till 480 - 490 Levels shortly.
I really don't know what will after that.
Ok I'm again of the opinion that CIPLA is going to go up. If it Crosses 471 then 474 - 475 is coming up. It does look like there is some kinda delay. Maybe its just waiting for June 22nd for the management to come up with some crap decision.
After spending almost two years in stratosphere, Cipla is coming back to earth. Our bias is that Indian Pharma sector will continue to grow. That means, we should buy good pharma stocks when everybody is selling. Yesterday's bad result will be forgotten sooner or later and we will be back to talking about growth. Of course, we are not sure when the slide in...
A big down bar on weekly charts on lower volumes after a bounce from 200 WMA with higer vols. Is this a continuation of a breakdown. Maybe more clues over the next few candles, perhaps!
As per the Elliot Wave, 5 waves correction has been completed and now I expect three upward corrective waves before the its bearish downtrend resumes in its direction.
Risk/Reward: 1:5
Target: 609-616
Stoploss: 571-580
