Merck near target on Open Offer from P&G for 26% stake.
Stock is at 1791. 18% up from recommended price.
Any such big move in the stock is considered bullish signal with lows of the day as SL (1550 in this instance).
If the stock is not able to make fresh closing highs for 3-4 consecutive days (highs acting as resistance), then stock can retrace 30-50% of the move. i.e The stock can correct between 1640-1700 before fresh up move starts.
It is advised to book 50% profits and remaining 50% if fresh closing highs are not made for 3-4 sessions and buy on dips towards 1640-1700. for a target of 1950. SL 1550. 3 months.
P&G has offer to buy 26% stake from Merck at 1500.
Earlier call on Merck: