Ranbaxy rangebound between 500-570

CNBC-TV18’s Executive Editor, Udayan Mukherjee - I think Ranbaxy Laboratories probably settles down in broad range of Rs 500-570 broadly kind of Rs 50-60 range. Below Rs 500 it won’t break now, till the open offer is done at Rs 737 because the arbitrage will support it. Above Rs 560-570 it becomes difficult because then one is moving against arbitrage and building it in a hope on open offer etc, which seems a bit dicey right now. 

So for the moment, I think people will play the arbitrage of tendering that or getting that one share accepted and that will probably mean that Ranbaxy becomes a range bound stock. The next move probably comes when once the open offer is done then one will need to take a judgement call looking at Lipitor etc all these developments and figure out whether Ranbaxy needs to settle down at Rs 500-550-480. 

So that’s the judgement call because then one is down to valuations not playing an arbitrage but for the moment, I think pending that surprise from Pfizer which is unlikely one is probably in that Rs 500-575 range or even narrower Rs 520-560 kind of range.