Cipla Shares Zooms Past 4% on Thursday, Bounces On US FDA Nod

Mumbai, April 23: Cipla shares started off with a bang on Thursday. The company opened at around ₹1,236, barely off its previous close. However, buyers quickly moved in to stack up positions. By noon, the stock was already at ₹1,287, up ₹50.70 or over 4.1% from the open, with the intraday chart indicating a near vertical rise from 9:15 am.

Price hit a high of around ₹1,295 just before 10:15 am, quickly pared gains to consolidate briefly but bulls remained in control through noon and maintained the LTP comfortably over the ₹1,236 previous close, with a premium of over ₹50 still intact. The day’s low was pegged right at the open, around ₹1,232 and thus the ₹1,232-₹1,295 intraday range was tight but well-defined with strong directional bias. Cipla’s 52-week high is ₹1,673 and 52-week low is ₹1,165.70.

Weekly Chart
Zooming out to the weekly price chart, Cipla had a choppier but ultimately positive course over five days — shooting up to hit a high of ₹1,244 on April 17 before crashing to a weekly low of around ₹1,229 on April 20. It then began recovering and ended April 22 around ₹1,240. The gap up on Thursday took that positive move and pushed it into an actual rally. On the weekly timeframe, it looks like the stock found support mid-week and rebounded off of it.

Order Book

Thursday’s order book told a similar bullish story. Total Buy orders outnumbered Total Sell orders by taking up 54.59% of the order quantity versus 45.41%, with 2,55,931 shares on the buy side compared to 2,12,872 shares on the sell side. Bid prices clustered tightly between ₹1,286.30 and ₹1,286.70, while ask prices hovered between ₹1,287.10 and ₹1,287.50, with only ₹0.10 between the highest bid and lowest ask. Additionally, quantity on the bid side greatly outnumbered the ask side, with 263 shares waiting at ₹1,286.40 and another 218 at ₹1,286.30 compared to just 136 shares at the lowest ask price of ₹1,287.10.

Tailwinds for Rally
The reason for today’s move was a green light from the US FDA. The US Food and Drug Administration has approved Cipla USA Inc., wholly-owned subsidiary of Cipla, to market its generic version of a popular asthma inhaler. The approval allows Cipla to deepen its participation in the respiratory category. The approved drug – Albuterol Sulfate Inhalation Aerosol, 90 mcg per actuation, is Cipla’s first AB rated generic equivalent of Ventolin HFA, a drug product of GlaxoSmithKline. An AB rating means it can be substituted by pharmacists for the brand-name drug, throughout the United States subject to state laws. The product is used to treat and prevent bronchospasm in adults and children aged four years and above, and to prevent exercise induced bronchospasm and respiratory symptoms.

Source:

• https://www.nseindia.com/get-quote/equity/CIPLA/Cipla-Limited