Buy Ranbaxy for target of Rs 470: IIFL

MUMBAI: IIFL has advised traders to buy Ranbaxy Laboratories for target of Rs 470.

“After forming a piercing line pattern of Fridays trading session, Ranbaxy Laboratories consolidated in narrow range of Rs 450-456 on Monday taking a shape of small spinning top. Such consolidation also was evidenced from volume activity which shrunk to one tenth of that of Friday.

We see a breakout on Ranbaxy’s daily line chart and yesterday’s low of Rs 450 acted as solid support line for such breakout.

We expect stock price to rally from here on and test levels of Rs 470 in coming days. Stock also has crossed above its 100-DMA which is also likely to ignite positive momentum in the short term. We advise buying stock above Rs 456 with stoploss of Rs 450 for target of Rs 470 and Rs 484,” the report said.

Note:Trading idea valid for time-period of 1-3 days.