EquityPandit’s Outlook for Cipla for the week (August 24, 2015 – August 28, 2015):

CIPLA:

CIPLA closed the week on negative note losing around 6%.

As we have mentioned last week that the stock is approaching towards the strong resistance zone of 750 to 755 where earlier highs of the stock is lying. The stock was not able to move above the resistance zone of 750 and sold off to the levels of 670 during the week.

The stock has formed a Bearish engulfing pattern on weekly charts and the stock has to move above the levels of 740 to negate this pattern.

Support for the stock lies in the zone of 660 where 100 and 200 Daily SMA are positioned. Below which the stock can drift to the levels of 620 where long term support for the stock is lying.

Resistance for the stock lies in the zone of 700 to 710 from where the stock has broken out.

Broad range for the stock is seen in the range of 650 – 660 on downside to 710 – 720 on upside.