EquityPandit’s Outlook for Dr. Reddy for the week (February 22, 2016 – February 26, 2016):

DR. REDDY:

Dr Reddy closed the week on positive note gaining around 7.50%.

As we have mentioned last week that resistance for the stock lies in the zone of 3000 where short term moving averages are lying. If the stock manages to close above this levels then the stock can move to the levels of 3150 to 3200 from where the stock has formed a double top pattern and also 500 Daily SMA is lying. During the week the stock manages to hit a high of 3154 and close the week around the levels of 3059.

Support for the stock lies in the zone of 2950 to 2980 where short term moving averages and gap is lying. If the stock manages to close below this levels then the stock can drift to the levels of 2750 where the stock has formed a short term bottom.

Resistance for the stock lies in the zone of 3150 to 3200 from where the stock has formed a double top pattern and also 500 Daily SMA is lying. If the stock manages to close above this levels then the stock can move to the levels of 3400 where 100 Daily SMA is lying.

Broad range for the stock is seen from 2950 – 2980 on downside to 3170 – 3200 on upside.