Divi's Labs is a trading call: CK Narayan

ET Now spoke to CK Narayan, President Treasury, Sharyans Resources, on his view on Divi’s Labs.

What is the call on Divi’s Labs?

The uptrend in Divi’s has been a long time coming. It has been one of those set of pharma stocks which have not really participated on the upsides like several others. So it needed this booster in the form of news. Still not really so charmed by the wiles of this particular stock. Upwards about say 1% or 2% from here, the share would run into some fairly decent set of resistances.

So clearly the stock is not out of the woods. This is a knee jerk reaction and this is something which is going to play out across several weeks and months. So the kind of knee jerk reaction which you have seen today is also probably related to the paucity of any other tradable setups in any other stocks today. So it is a function of the day which is not really likely to result in any kid of persistence. So click that while you can for the day or 2 but really do not take it home.