Exit Ranbaxy Labs around Rs 440-450, says Sanjeev Agarwal

Sanjeev Agarwal, CEO of Dynamix Research & Capital Management told CNBC-TV18, “Ranbaxy has fallen on the negative news (Daiichi Sankyo is exploring legal remedies to sue ex-promoters of Ranbaxy). Particularly it may remain in that overhang for some more time and this equity market falling after the liquidity scare is not helping that cause. However, I feel that there maybe a chance for a pullback around Rs 440-450. So, that will be an ideal level to exit the stock.”

“Nevertheless, I will definitely say any pullback you should be able to exit this stock otherwise we are expecting market to go down significantly from here and this liquidity driven rally will end up more like a bull trap rather than providing a good long-term investment opportunity,” Agarwal said.