EquityPandit’s Outlook for Dr. Reddy for the week (January 25, 2016 – January 29, 2016):
Dr Reddy closed the week on negative note losing around 1.80%.
As we have mentioned last week that the stock has closed around the support zone of 2940 from where the stock has broken out in the month of August – 2014. If the stock closes below this levels then the stock can drift to the levels of 2600 where 1000 Daily SMA and 200 Weekly SMA are lying. During the week the stock manages to hit a low of 2750 and close the week around the levels of 2882.
Minor Support for the stock lies in the zone of 2750 where the stock has formed a short term bottom. If the stock closes below this levels then the stock can drift to the levels of 2600 where 1000 Daily SMA and 200 Weekly SMA are lying.
Resistance for the stock lies in the zone of 3000 to 3050. If the stock manages to close above this levels then the stock can move to the levels of 3150 where 500 Daily SMA and 100 Weekly SMA is lying.
The stock has formed a Hammer pattern in a downtrend indicating the trend reversal or exhaustion in selling pressure.
Broad range for the stock is seen from 2800 – 2850 on downside to 3000 – 3050 on upside.