Chart Check from IIFL Private Wealth for Monday, March 19: Idea, Ranbaxy

1) Idea Cellular is a 'BUY' call with a target of Rs 104 and a stop loss of Rs 95

IDEA on its weekly charts has formed an inverse head and shoulder formation prima facie which is a bullish pattern formation whose neckline comes around 100 levels. Sustaining above 100 levels the stock can see a further upside towards 108 levels.

However, on downside stock finds immediate support around 94 levels. The stock is trading above its short term and long term moving averages suggesting positive bias.

The MACD indicator on its daily charts has given a positive crossover to its signal line, suggesting buying momentum to continue in the stock.

2) Ranbaxy is a 'SELL' call with a target of Rs 395 and a stop loss of Rs 420

RANBAXY on its daily charts is trading in a falling channel indicating weakness in the stock. The stock has also been an underperformer to its peers and to CNX Pharma Index.

Sustaining at current levels the stock can move towards its lower end of the channel and can move towards 395-390 levels. However on upside, the stock faces resistance around 422 levels.

The stock is trading below its short term and long term moving averages suggesting negative bias.