EquityPandit’s Outlook for Dr. Reddy for week (July 27, 2015 – July 31, 2015):
Dr. Reddy closed the week on positive note gaining around 1%.
As we have mentioned last week that if the stock manages to cross above the channel resistance positioned around the levels of 3950, we may see stock moving towards the levels of 4200. The stock hit a high of 3965 levels on 23/07/2015 but could not sustain above it and close the day on 3913.
On 24/07/2015, the stock could not move above the levels of 3950.
The stock has formed a Doji pattern on weekly charts in an uptrend indicating confusion among the traders about the further direction of the stock.
For uptrend to continue the stock has to close above the levels of 3965. If the stock manages to cross above the resistance zone of 3965 the stock can move to the levels of 4100.
Support for the stock lies in the zone of 3750 to 3800 where short term moving averages are positioned.
Broad range for the stock is seen from 3750 – 3800 on downside to 4000 – 4050 on upside.