Investors with a short-term perspective can consider selling the shares of Cipla

Investors with a short-term perspective can consider selling the shares of Cipla. The stock fell 2 per cent on Monday. The upmove in the stock, which began from the May 7 low of Rs.621 halted at Rs.696. The range-bound movement thereafter, around its 55-day moving average at Rs.688, suggests lack of buying interest in the market. The sharp 4 per cent fall over the last three trading sessions has increased the downside pressure and has turned the short-term outlook to bearish.

Immediate resistance is at Rs.675 which could cap any immediate rally in the stock. The next key resistances are poised at Rs.688 and Rs.695. The stock can fall to Rs.640 and Rs.628 — the 200-day moving average support level in the upcoming sessions. Short-term traders can go short. Stop-loss can be kept at Rs.667 for the target of Rs.645. The downside pressure will ease only if the stock records a strong close above Rs.688 — its 55-day moving average resistance.