CK Narayan, Managing Director at Growth Avenues told CNBC-TV18, "Lupin and Ranbaxy Laboratories are both in a range with slight contrarian setup. Lupin is struggling against the higher end of a range and above Rs 1400 if the results are good and were to trigger an upward spike above Rs 1400 Lupin would remain a buy and head out considerably higher probably about Rs 100 minimum can be added."
He further added, "On the other hand Ranbaxy is trying to but against the lower level support which is very near at about Rs 585. Given the fact that the next support in Ranbaxy is quite a way off, I would not really hesitate to take an exit from long positions if something were to be adverse or the stocks reception to the numbers were to be adverse. So the approach would be a little different for Lupin as well as for Ranbaxy, I would be gladly a buyer in Lupin on a breakout because there is strength and the stock seems to be indicating that."
"Ranbaxy is trading up against near its all time high at about Rs 600-625. So even if it were to survive and try to build on the lower level of support of the range, I think Rs 625-630 would be the maximum that I would look at for a day or two here. Subsequently we can take a call if it were to show continued strength but range between Rs 585-625 for Ranbaxy with a definite exit call from longs below Rs 585 and a breakout buy in Lupin above Rs 1400 levels, so those would be the two main picks."
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