Buy Ranbaxy Labs; target of Rs 572: Nirmal Bang

Nirmal Bang is bullish on Ranbaxy Labs and has recommended buy rating on the stock with a target of Rs 572 in its October 15 2012 research report.

“Ranbaxy Labs has been in an uptrend in a rising channel pattern since Dec’11 forming a series of lower highs and lows.  The counter after a sharp advance from the recent Aug’12 lows later formed a higher high in Sep’12 around the Rs580 levels which found resistance near the rising trend line drawn from connecting April’12, May’12 & Sep’12 highs.  The stock recently has held its support of Rs520-Rs530 levels along with the 50sma and the short-term falling channel pattern which further validates the support zone. The stock prior to the breakout formed series of minor higher lows along with multiple bullish candlestick patterns which hinted for an upside breakout.”

“The stock has managed to exceed from the descending channel pattern along with the horizontal resistance zone of Rs542-Rs545 levels with above average volumes which confirms the bullish breakout in the stock. The price projection is found by measuring the widest distance of the pattern and subtracting it from the resistance breakout with the targets the rising channel pattern resistance around the Rs582-Rs590 levels.  The MACD has given a positive crossover and is above the positive territory. The RSI indicator is currently advancing indicating bullish momentum in the stock. The indicator has maintained its Bullish support range of 40 levels since May’12 which indicates the bullish bias in the counter and possibility to make a new high. The RSI indicator from its 40 support levels confirmed a possibility of a new uptrend by exceeding above its recent peak,” says Nirmal Bang research report.

Institutional holding more than 40% in Indian cos

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