Sizzling Stocks: Blue Dart Express, RANBAXY LABORATORIES

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Blue Dart Express (Rs 1993.10)

Blue Dart Express: The stock jumped 18 per cent in the later part of the week, following the company’s announcement of an offer for sale of equity shares by the promoter. The floor price for the proposed offer was set at Rs 1,720 an equity share.

After a medium-term downtrend from a new high of Rs 2,205 registered in April this year, the stock took support at Rs 1,650 in early September. This support level subsequently arrested further declines, and the stock surged last week. With this rally, the stock appears to have resumed its long-term uptrend that has been in place from its early 2007 low at Rs 370 levels.

However, the stock is currently testing key resistance at Rs 2,050. A decisive breakthrough of this resistance will take the stock higher to Rs 2,150, Rs 2,200 and new highs in the medium term. Failure to rally above Rs 2,050 can pull the stock down to Rs 1,866 and then to Rs 1,775 in the medium term. Next key support for the stock is pegged at Rs 1,650 levels.

RANBAXY LABORATORIES (RS 495.90)

Ranbaxy fell by 3 per cent accompanied by above-average volume following an announcement torecall its generic version of Lipitor in the US.

For the week, the stock tumbled almost 5 per cent, decisively breaching its significant long-term support at around Rs 530. Since peaking out at its September high of Rs 578, the stock has been on a short-term downtrend. It is hovering well below its 21- and 50-day moving averages.

The stock is testing key support and its 200-day moving average at around Rs 500.The daily indicators are featuring in the bearish zone implying downward momentum. Strong decline below that support will pull the stock down to Rs 475, an important long-term base level. Further decline will mar the stock’s intermediate-term uptrend and drag it down to Rs 440 and Rs 400 in the medium term.

On the other hand, the stock needs to emphatically rally above Rs 530 to alter its short-term downtrend and move higher to Rs 550 and then to Rs 580 levels in the medium term. Immediate resistance is at Rs 515.