Ranbaxy – Short-Term Investments
This stock was trapped in a tight congestion phase for several days and had a tough battle with 425-430 levels. A look at the attached weekly chart clearly suggests that this level was formed by a stiff resistance of the 62% retracement of the entire primary decline. The recent rise was quite swift and decisive and led the prices to give a strong breakout above the said resistances.
Momentum was in sync with the price rise and a substantial increase in cash volumes further indicates more than ordinary interest at the counter. The technical set up on charts is interesting and the positive news of having introduced a generic version of GlaxoSmithKline`s Valtrex in the United States with a 180-day marketing also increases likelihood of inviting more buyers to propel the prices higher. Buy now or dips to 434 with a stoploss below 425. Targets – 478 /496 / 515.
Tip by IDBI
Popularity: 5% [?]
Category: Short Term
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