Ranbaxy has support at Rs 402-397: N Pillai

Neppolian Pillai, Head Institutional Equity, Modern Shares & Stock Brokers is of the view that Ranbaxy has support at Rs 402-397.

Pillai told CNBC-TV18, "Ranbaxy is one of the favorite stocks for us but we have given up on the stock at the higher level of Rs 598, it is no more an accumulation stock. It has become momentum stock news driven. On the downside, Rs 402 to Rs 397 could have been the support, it fell up to there and now it is recovering from there. Close to around Rs 490, it is going to have some trouble. If it crosses that then Rs 532 but this is a punter’s stock now, it is a trader’s stock now; I do not think investors are going to be in here, most of them would have sold out at higher levels. Unless those who are waiting for the buyback for the open offer I think we have shifted our attention to Cipla completely now from Ranbaxy counter."

Disclosure: It is safe to assume that analyst and his clients may have an investment interest in the above stock/sector.