Sell Cipla, HCL Tech may test Rs 780: Chandan Taparia

Chandan Taparia, Derivative & Technical Analyst at Anand Rathi Securities told CNBC-TV18, "Cipla and HCL Technologies are not participating in their bounce back move. Cipla recently made bottom near to Rs 506 and given bounce back towards Rs 551-550 zone. However, on upside, sustained pressure has been witnessed in the counter. Immediate trend is negative. It is making lower top lower bottom formation on the monthly and the weekly chart. It failed to hold the higher levels. Weakness might continue and the stock has potential to retest its recent lows. Recommending to sell with a stop loss of Rs 545 for the downside target of towards Rs 510-506." "In HCL Tech, we have seen built up of short positions. It is continuously falling down from a last six series adding built up of short positions and those short are rolling from series to series. Recently it have made an attempt towards Rs 855 but failed to hold those levels. Now supplies are shifting to lower levels, so the recent resistances is coming near to Rs 835. Keep a stop loss of Rs 835 with a downside target of Rs 780," he said.