Buy Ranbaxy , says Sudarshan Sukhani of s2analytics.com.
Sukhani told CNBC-TV18, " HCL Tech has been inching upwards and it's been underperforming TCS and Infosys . But the chances are yesterday it made new highs. We are talking about new highs for this bull market, this current run. The new highs tell us that there is significant momentum now likely and HCL was in a compressed state, so once any stock moves out of a compression there is a very big up move. HCL Tech is probably the best IT stock today."
He further added, "Ranbaxy has a rally from Rs 380 to Rs 470-480. Now what we have seen in Ranbaxy is a small slide. That slide is taking the shape of a perfect flag. That tells us that Ranbaxy's final targets could easily be Rs 550 plus. May or may not be because the markets have to help us and they are doing that. So Ranbaxy is again not just a day trade. Yesterday the stock saw gains; today we could see a significant breakout on the upside. It's also a position trade and it's a far better chart pattern than some of the other momentum stocks that we keep on discussing. So, Ranbaxy works for both, positions and swing trading, day trading."
