Cipla Ltd, a NIFTY 50 stock, is a favourable buy in delivery for swing trading

It is less than one hour to the close of the Indian stock market and further tomorrow is a trading holiday.

Cipla Ltd (NSE symbol: CIPLA) offers a favourable position to buy in delivery.

In this article, we will go though the stocks and learn technical analysis as we understand this author’s take on technical analysis and his rationale to arrive at the forecast.

Its annotated daily price chart is attached below:CIPLA’s 50 day simple moving average (SMA) is above its 200 day SMA. Next, the 200 SMA is rising, and the 50 has also started rising after remaining flat for some time.

Next, at the time of writing today’s price action forms a White Marubozu. This candlestick pattern indicates strong buying pressure. Further, today’s candle is eliminating the previous two trading days’ red.

Thus CIPLA provides a good Trend Following trade i.e. a trade where we do not have a predefined target and if the stock moves favourably, we will give it room to form a base first before trailing our stop.

The stop will be one tick below the low of the previous trading day candle i.e. a stop order at 798.2

Disclaimer: All the content is for education purposes only.

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