Sun Pharmaceutical will buy Ranbaxy Laboratories in a $3.2 billion all-share deal. Under the terms of the deal, Ranbaxy shareholders will get 0.8 of a Sun Pharmaceutical share for each Ranbaxy share they own.
Under these agreements, Ranbaxy shareholders will receive 0.8 share of Sun Pharma for each share of Ranbaxy. This exchange ratio represents an implied value of Rs 457 for each Ranbaxy share, a premium of 18% to Ranbaxy’s 30-day volume-weighted average share price and a premium of 24.3% to Ranbaxy’s 60-day volume-weighted average share price, in each case, as of the close of business on April 4, 2014, said the company in a statement.
At 1230hrs, Sun Pharma stock was trading 1.20 per cent higher at Rs 578.75. It touched a high of Rs 599 and a low of Rs 574, during the day. Trading volumes remain robust with 6.97 million shares changing hands on the bourses.
Mohit Gaba, Independent technical analyst, analysed the technical levels on the chart pattern created by the price movement of the stock and gave his best strategy for trading the counter for short-term gains.
He also advised how to trade cement stocks like UltraTech cement and ACC among others. Below is the full transcript:
Benchmark indices are rangebound after witnessing a slight marginal movement last week. Do you see key indices hitting fresh all-time highs on the charts again or are we entering a consolidation phase?
The Index is consolidating, but as long as it trades above 6660 the bias is positive and one should this consolidation to build positions on the long side with a stop loss at 6660 on spot Nifty.
Two stocks that are making headlines today Sun Pharma and Ranbaxy. How would you suggest trading the counters. Is it right time to enter any of the counters?
One could buy Sun Pharma with a stop loss at 575 for targets of 610 - 615, I would not buy Ranbaxy at present levels.
Cement stocks are up today. Your outlook on ACC stock?
ACC looks okay, I would prefer Ambhuja cement, one could go long with a stop loss at 201
What is the trend in Bajaj Auto? Will it go back to 2193 levels?
Under these agreements, Ranbaxy shareholders will receive 0.8 share of Sun Pharma for each share of Ranbaxy. This exchange ratio represents an implied value of Rs 457 for each Ranbaxy share, a premium of 18% to Ranbaxy’s 30-day volume-weighted average share price and a premium of 24.3% to Ranbaxy’s 60-day volume-weighted average share price, in each case, as of the close of business on April 4, 2014, said the company in a statement.
At 1230hrs, Sun Pharma stock was trading 1.20 per cent higher at Rs 578.75. It touched a high of Rs 599 and a low of Rs 574, during the day. Trading volumes remain robust with 6.97 million shares changing hands on the bourses.
Mohit Gaba, Independent technical analyst, analysed the technical levels on the chart pattern created by the price movement of the stock and gave his best strategy for trading the counter for short-term gains.
He also advised how to trade cement stocks like UltraTech cement and ACC among others. Below is the full transcript:
Benchmark indices are rangebound after witnessing a slight marginal movement last week. Do you see key indices hitting fresh all-time highs on the charts again or are we entering a consolidation phase?
The Index is consolidating, but as long as it trades above 6660 the bias is positive and one should this consolidation to build positions on the long side with a stop loss at 6660 on spot Nifty.
Two stocks that are making headlines today Sun Pharma and Ranbaxy. How would you suggest trading the counters. Is it right time to enter any of the counters?
One could buy Sun Pharma with a stop loss at 575 for targets of 610 - 615, I would not buy Ranbaxy at present levels.
Cement stocks are up today. Your outlook on ACC stock?
ACC looks okay, I would prefer Ambhuja cement, one could go long with a stop loss at 201
What is the trend in Bajaj Auto? Will it go back to 2193 levels?
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