Technical Outlook & Trading Strategy:-
The Stock price of DR. REDDY has seen a fall from the high of Rs 1621 on 20th July 2011 to a low of Rs 1387 on 22nd Aug 2011.
Since then the stock has pulled back & closed above Rs 1504 which is a 50% retracement level of previous fall.
On the daily chart the stock has managed to close above its cluster of moving averages. The momentum indicator on the daily chart is also in a bullish zone suggesting more upside in the stock.
We recommend traders to buy 50% now and again on dips up to Rs 1500--Rs 1510 levels with a stop loss placed below Rs 1477.8 levels for targets of Rs 1574 – Rs 1600 levels.
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