Buy Ranbaxy Labs, Dr Reddys Labs, BoB: Merani

Buy Ranbaxy Laboratories . The stock has given a huge breakout yesterday from a symmetrical triangle. The implications of such a breakout are a target price of almost Rs 600-630 in the next 2-3 months. It can come faster also. The last two attempts at Rs 520-525 saw a huge drop into the stock coming down to Rs 480-470 levels. Yesterday’s huge move with volumes has confirmed a breakout and any dips from current levels would be a buying opportunity with a target price of Rs 600-620 in the medium-term.

Buy Dr Reddy’s Laboratories with an intraday target price of Rs 1,720 and short to medium-term target price of Rs 1,800. The stock has given a breakout out of a symmetrical triangle. Yesterday it has closed above Rs 1,680 which was a resistance for the last 2-3 sessions. We can expect the stock to touch Rs 1,720 in the short-term and head up to Rs 1,800.

Buy Bank of Baroda with an intraday target price of Rs 655 and medium-term target price of Rs 700-730. If you look at the movement of the stock over the last 6-12 months every time the stock goes to 620-630 levels and it bounces back. Recently the stock has touched similar levels and indicating a turnaround. It’s making a falling wedge reversal which if it closes above Rs 655 could be a major reversal heading up to Rs 700 very quickly.

Buy Hexaware Technologies . We continue to remain bullish on the midcap IT space and we can expect outperformance in Satyam, HCL Tech and a stock like Hexaware. If you look at the Hexaware technical charts the stock has made a good enough bottom around Rs 110-115 levels, at the same time there is a huge resistance around Rs 135 which we expect the stock to cross over the next few months. One can accumulate the stock at current levels with a stop loss at Rs 118 and a target price of Rs 135 in the medium-term.