Ranbaxy - Anybody expect it?


Active Member
Today Ranbaxy blast, sky rockening 28% from previous close.
Anybody expect it? How?
Any indiactor point out this? pl.explain.


Well-Known Member
According to my trading system, it was a 'do not take any trade in this stock'. So it makes no difference to me whether I was short and this zoomed up, or whether I was long and it zoomed up.

According to my trading system, the outlook is even more bearish after yesterday's big move.
From a fundamental perspective:

Ranbaxy's domestic business + "assured" pipeline (Para IV ANDA + FTF) valuation with a "modest" 14x-16x valuation comes to about Rs 280-320/share. So, stock can be expected to be bottoming out whenever it hits those sub-280 levels, 'cause all the bad news flow etc were happening the US, which can only get better from here on.

So, esp given the overall "run to safety" on a bear market to Pharma sector stocks, expect large scale institutional buying starting around these levels. Expect at spurt to 440-460 levels before the stock price stabilizes and news flow dependent again.

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