Short term investors and traders can go long on Cipla Ltd. as the stock has hit new 52 week high supported by increased volumes on the back of news of the company winning a patent case against Roche in Delhi high court. The company has also reported very strong July quarter numbers which is creating positive sentiment for it's stock. Valuation wise the stock is expensive but one of the cheaper stocks among large cap pharma names listed on Indian bourses which is triggering the fresh buying interest in the stock.
Traders can go long on the stock at 389 - 392 levels with a stop loss placed at 384 (a notch below the saturday's 8th Sep low). Short term investors can go long in the same range with stop loss placed at 371 (a buck lower than the weekly low for the stock). On further rise in the stock price adjust the stop loss insurance levels accordingly.
The trade is expected to generate 5 - 10 percent return in 2 - 3 weeks times.