Short Ranabxy & buy any pharma stock: Mithil Pradhan

Mithil Pradhan of Violet Arch Capital Advisors told CNBC-TV18,"Pharma sector being a defensive is one of the best performing sectors that we have among the defensive space. We personally like Dr Reddy’s and we look at Dr Reddy’s Laboratories. We look at it from a very long-term perspective and from a sector perspective as well."

Pradhan also siad that "At this point in time, the performance of the healthcare remains at a life-time high against Sensex. What this ideally means is that, any dips coming into pharma even if those are intraday kind of dips they are being bought by investors who still believe that pharma is going to outperform the Nifty as well as the overall broader market." He also adds that "The exception in the pharma sector is Ranbaxy. Ranbaxy has been virtual underperformer not only to the Nifty but also to the BSE Healthcare Index. A few days back the stock on a relative strength basis has given head and shoulder breakout on the ratio chart versus Nifty. What it ideally means is that there is a long term underperformance which is expected to be seen in Ranabxy. What we are advising clients at this point of time is short Ranabxy and buy any pharma stock – it could be something like Sun Pharma or Dr Reddy’s or it could be simply sell Ranbaxy and Nifty. With the exception of Ranbaxy more or less we continue to remain bullish on all the pharma names in the sector."