EquityPandit’s Outlook for Dr. Reddy for the week (November 09, 2015 – November 13, 2015):
Dr Reddy closed the week on negative note losing around 15%.
As we have mentioned last week that resistance for the stock lies in the range of 4320 to 4350 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. During the week the stock manages to hit a high of 4379 and sold off to the levels of 3630 on back of USFDA warning letter on company’s manufacturing units.
Resistance for the stock lies in the range of 3710 where 200 Daily SMA is positioned. If the stock manages to close above this levels then the stock can move to the levels of 4000 where 100 Daily SMA is positioned.
Support for the stock lies in the range of 3400 to 3450 where channel support for the stock is lying. As seen from the chart the stock is moving in this channel since August – 2014. Minor support for the stock is lying around the levels of 3580 where trend-line joining the lows of 09/02/2015 and 16/06/2015 is positioned.
Broad range for the stock is seen from 3450 – 3480 on downside to 3720 – 3750 on upside.