CIPLA Trading Buy Target 337

Ø CIPLA is an emerging player and second largest drug firm and has been in favour of alliances to grow its footprint. Post Cipla 's third quarter results, there have been a lot of brokerage downgrades, indicating there may not be a lot of earnings potential or earning triggers going forward for the drug maker in terms of high growth, on back of which the stock has been was in strong downtrend and witnessed the fall till the mark of 286.00. Recording highest volumes in last one year. (see the Chart Attached)

Ø According to us RSI oscillator on daily chart is also on rising mode that makes upside momentum reliable.

Ø We Feel the worst is over for the company and the downside could be limited from these levels as valuation have also fallen in-line.

Ø Market has failed to take cognizance of positives such as overseas expansion plans which going forward are expected to fructify, with continents like Africa, Americas and Europe aiding growth. Cipla is also in talks to expand this partnership to other respiratory products and other markets, especially in Europe.

Ø Recently It has joined hands with the world's largest generic company Teva to sell its products in certain markets. This move gives Cipla a stronger presence in the USD 20 million Russian inhaler market. Cipla will get access to the region's USD 3-billion plus inhaler market, a country where Cipla already has a tie-up with Dr Reddy's Labs to sell prescription drugs..

Ø We suggest this counter will be an ideal buy at 302 which will make the up move reliable with target of 337 with SL of 286.00