Buy Cipla on dips to Rs 375; SL Rs 368: Harchekar

One can buy Cipla on dips towards Rs 375 with a stoploss of Rs 368 for the target of Rs 420, says Amit Harchekar of IIFL.

Harchekar told CNBC-TV18, "Defensives are likely to outperform the market because we have not seen any good outperformance from high-beta sector like metals and capital goods in this rally. The stock like Cipla again I believe the resistance would be around Rs 392. If that gets taken out on the closing basis then I am expecting levels of more than Rs 420. We have seen a good run up in last couple of days. So some consolidation is not ruled out. One right way to approach this stock would be waiting for a dip towards Rs 375 and that gives a good entry point with a stop of Rs 368 and Rs 420 would be my optimistic target on this counter." Disclosures: We have recommended few strategies to our clients but no personal holdings.