EquityPandit’s Outlook for Dr. Reddy for the week (December 21, 2015 – December 24, 2015):

DR. REDDY:

Dr Reddy closed the week on absolutely flat note.

As we have mentioned last week that resistance for the stock lies in the range of 3050 to 3100 from where the stock has broken down after forming a double bottom. If the stock manages to close above the levels of 3100 then the stock can move to the levels of 3200 where 500 Daily SMA and 100 Weekly SMA is lying. During the week the stock manages to hit a high of 3064 and retraced to close the week around the levels of 2974.

The stock is trading 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 2500 where 1000 Daily SMA and 200 Weekly SMA are lying.

Resistance for the stock lies in the range of 3050 to 3100 from where the stock has broken down after forming a double bottom. If the stock manages to close above the levels of 3100 then the stock can move to the levels of 3200 where 500 Daily SMA and 100 Weekly SMA is lying.

The stock has formed a Inverted Hammer pattern on weekly charts in a downtrend indicating the trend reversal or exhaustion in selling pressure.

Broad range for the stock is seen from 2780 – 2800 on downside to 3100 – 3150 on upside.