Quant Pick - Cipla: ICICI Direct
According to ICICI Direct, Buy Cipla in range of Rs 790-807 Target: Rs 930 Stop Loss: Rs 725 Time frame: Three months.
December 22, 2020 / 12:58 PM IST
ICICI Direct's research report on Cipla
Buy Cipla in range of Rs 790-807 Target: Rs 930 Stop Loss: Rs 725 Time frame: Three months.
Derivatives & Quantitative Outlook
The pharma space has shown significant resilience in the last couple of months amid a broader market recovery. We believe the sector is set to resume its next round of upside move after a round of consolidation. Cipla has retraced to Rs 720 levels after making highs near Rs 830 in September. As long positions are still intact in the stock, we believe it will resume its upward momentum in the near term. The open interest in Cipla has been accumulating gradually in the last couple of months. The open interest in the stock has increased by 50% since April along with price movement as long positions were formed in it. Despite recent consolidation in the stock, the open interest has remained intact suggesting prevailing long bias is still intact. We expect the stock to move towards Rs 900 and above in the days to come.
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