The breach of the crucial 200-day moving average adds to the bearish outlook, with ₹1510 now expected to act as resistance.
Cipla Ltd's stock has recently shown signs of a downturn after a significant uptrend, with SEBI-registered analyst Anupam Bajpai providing a bearish outlook.
The stock had previously formed support at ₹1,510 and resistance at ₹1,570, but a pivotal development occurred on Tuesday, when the stock broke below the key support level of ₹1,510.
This decline, according to Bajpai, signals a potential further fall in the stock price.
At the time of writing, Cipla shares were trading at ₹1,485.70, down ₹23.10 or 1.53% for the day.
Bajpai pointed out that the closing below the crucial 200-day moving average, which had acted as a key level of support, further confirmed the bearish trend.
The 200-day moving average is considered a critical indicator, and its breach suggests that the stock may face additional downward pressure.
The analyst also highlighted that once support levels are breached, they tend to turn into resistance levels.
As a result, ₹1,510, which was previously a support zone, will now act as an important resistance level for Cipla.
This shift in dynamics suggests that if the stock fails to reclaim this level, further declines could be in store.
Bajpai’s analysis points to a more cautious outlook for Cipla in the near term, with the stock facing a challenging path unless it can reclaim its previous support levels.
On Stocktwits, Sentiment was ‘bullish’ amid ‘normal’ message volume.
Cipla’s stock has declined 2.8% so far in 2025.
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