Today’s pick is RANBAXY. [stockquote]RANBAXY[/stockquote]. The stock was in a constant uptrend since March. However, a couple of weeks ago it exhibited a double top, and closed down below the existing trend line, suggesting a stop of the trend. In the last three months, the stock is down -6% against 11% rise of Nifty’s.
MACD line and signal line are moving parallel to each other and are not suggesting any direction for the stock.
The long-term and short-term GMMA lines are running very close to each and hence are of not much use currently in suggesting any particular direction.
Short-term technical just saw a 4X9 bullish cross over for the stock.
RANBAXY has a historical volatility in the range of 0.3 to 0.7. The scrip’s volatility is currently in the lower side of the range.
Looking at these technicals the stock is short-term buy. A medium term hold is suggested because of the direction-less movement of the stock. A longer term call could be taken based on the stocks behavior around the base of the last double top (which will be acting as a resistance level).