The long term chart of CIPLA is suggesting that it may be near to completing a multi year side way correction.
The recent buying interest in Pharma sector can well act as the trigger for the stock to complete the correction and resume it's longer term upward movement.
I will wait for a close (preferably a weekly close) above Rs 225-230 to enter the stock - keeping a time frame of about 8-12 months ( Yes! I know that's very long!)
After Ranbaxy - is it Cipla's turn to outperform ? ? Time will tell!!
Till then, Happy investing !
CA Rajiv D Khatlawala
3 comments:
hi,
Yes I think Pharma and IT outperform in the bear mkt. Is'nt it?
Mr Rajiv,
Isn't CIPLA Chart showing MACD Negative divergence since Jan 08 till today?
man4urheart
The short term -ve divergence gave you the correction to 197 on May 26th ..
It is quite usual for scrips in uptrends to give temporary divergence , followed by a fall and then a resumption of the move .. ( this is what we call technical correction)
Check various charts during the previous year for validation!
Regds
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