Ranbaxy has signaled breakout: IIFL

MUMBAI: According to IIFL after falling towards 20-DMA support, Ranbaxy Laboratories is showing signs of a breakout.

“After hitting an intermediate top of Rs 612 last week, Ranbaxy Laboratories witnessed some profit taking and it fell towards the support of its 20-DMA, taking structure of ‘Falling Wedge’ which is considered a bullish consolidation.

Yesterday’s close above Rs 585 has signaled breakout from the above mentioned pattern with spurt in volumes. We expect the pullback from 20-DMA to continue in the coming days and stock may head towards peak of Rs 612. We advise buying the stock above Rs 588 with stop-loss of Rs 578 for an immediate target of Rs 612,” the report said.

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