EquityPandit’s Outlook for Dr. Reddy for the week (October 05, 2015 – October 09, 2015):
Dr Reddy closed the week on positive note gaining more than 6.5%.
As we have mentioned last week that 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. During the week the stock manages to hit a high of 4250 and close the week at virtually the highest point around the levels of 4233.
Resistance for the stock lies in the range of 4290 to 4320 where trend-line joining highs is positioned. If the stock manages to move above this levels on closing basis then the stock can move to the levels of 4400.
Support for the stock lies in the range of 4100 to 4150 where short term moving averages are positioned.
The stock has formed a Hanging man pattern on monthly charts in an uptrend indicating the trend reversal. The stock has to sustain above the levels of 4310 on monthly closing basis to negate this pattern.
Broad range for the stock is seen from 4150 – 4170 on downside to 4320 – 4350 on upside.