Pharma giant RANBAXY is in bullish trend. It has tested its 200 DMA level of 416 in its weekly charts and trading above that level. It took strong support from lower Bollinger bands at 399 and is moving towards upper band of 471. RSI at 28.11 indicates that the stock is in oversold condition.
Traders can enter long positions with a target of 471 within one month. Keep Stop-loss at 415 and enter long positions. Option traders should wait some more time to take positions as the premiums are very high right now and they can buy 460 CE when it is available around 5/-. Option writers can short 440 PE at current prices.
Guys Ranbaxy reached my target on friday.
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