The above is the WEEKLY Chart of Ranbaxy Labs.
We may observe that the long term falling trendline has been broken near Rs 450/- and other indicators too ( not shown here) are showing signals of upmove.
Considering that the stock has given break out and other signals on the weekly chart , it becomes a good stock for investing , rather than for trading.
Investors may target a minimum level of the previous high (Rs 650) ... Stoploss for investors will now be at Rs.375/-.
Also considering the fact that Pharma companies are beneficiaries of a depreciation in the Rupee and also that they tend to witness 'defensive' buying in a falling market, even fundamental investors may find it attractive .
(I presume you all have noticed that the Dollar has gone near the target level of Rs 41 today... In my article dated 23rd April I had given this target when spot was around Rs 40.06... You may scroll down for the detailed analysis...)
Happy INVESTING !
CA Rajiv D Khatlawala
2 comments:
I think stock should take support near 447 rs .
Yes Hersh ..
So investors may use price falls to buy the stock ... keeping the longer term stoploss in mind ...
Regards
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