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In the previous session, we witnessed the corrections in the market. The Nifty index saw a flat opening but within an hour it slipped into a negative zone. The index formed a small Bearish candle pattern and closed with a net loss of 66.25 points. Technically, The Nifty index still managed to close above the Middle Band Bollinger on the chart. If Index prices move below this support band, then we can see more weakness towards downside. Hence a cautious and stock specific approach is advisable for the coming session.
Look at the below research report of ‘Stocks to Buy for – Wednesday, June 30, 2021’ before the market opens.
Cipla Ltd
NSE :CIPLA BSE :500087 Sector : Pharmaceuticals
Cipla Ltd. got the approval from the Drugs Controller General of India (DCGI) to import Moderna’s COVID-19 vaccine for restricted emergency use in the country. By this news, Cipla share prices made a fresh new high near 989 levels and closed with a strong Bullish candle on the chart. Also, Cipla has joined a collaboration with four other major pharma companies for conducting the clinical trial of an oral antiviral drug called Molnupiravir for the treatment of mild Covid-19 patients in India.
Technically, there is a clear impulse rise as shown on the daily chart and the stock is currently moving in the form of wave 5. The 3rd wave completed near 966 level which was 161.8% of Fibonacci retracement level. After taking a support and bouncing off from corrective wave 4, stock is trying to resume its up move again. In addition, stock has given a break out of the small ‘Double Bottom’ pattern in the previous session but closed below the resistance line. Now again breaking above the resistance zone will confirm the trend. The Relative Strength Index (RSI) on the daily chart is 64.53; which indicates bullishness in the coming session.
In Short, Cipla Ltd looks to be positive. Now moving above 983 levels will confirm the uptrend and open up gates for higher levels towards 1025/1040 levels. This outlook remains valid as long as 943-944 is protected on downside.
Check More Analysis on CIPLA at: Cipla Ltd
