EquityPandit’s Outlook for Dr. Reddy for the week (September 28, 2015 – October 02, 2015):
Dr Reddy closed the week on negative note losing around 0.9%.
As we have mentioned last week that if the stock closes below the levels of 3950 the stock can drift to the levels of 3750 to 3800. During the week the stock manages to hit a low of 3857 and bounce to close the week around the levels of 3970.
On daily charts the stock has formed a double bottom at around the levels of 3850. The stock is moving in the declining triangle pattern. If the stock manages to close above the declining triangle pattern positioned around the levels of 4020 then the stock can hit the targets of around 4200. Support for the stock lies in the range of 3850 to 3900 where the stock has formed a double bottom pattern. If the stock breaks below this levels then the stock can drift to the levels of 3700 where trend-line support for the stock is lying.
Resistance for the stock lies in the zone of 4000 to 4020 where 50 Daily EMA and declining triangle trend-line are positioned. If the stock manages to close above this levels then the stock can move to the levels of 4200.
The stock has formed a Hammer pattern on weekly charts in a downtrend indicating the trend reversal.
Broad range for the stock is seen from 3850 – 3900 on downside to 4150 – 4200 on upside.