EquityPandit’s Outlook for Dr. Reddy for the week (March 08, 2016 – March 11, 2016):

DR. REDDY:

Dr Reddy closed the week on positive note gaining around 8.70%.

As we have mentioned last week that 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. During the week the stock manages to hit a low of 2978 and bounce to close the week around the levels of 3253.

Support for the stock lies in the zone of 3120 to 3140 where the neckline of the inverse Head & Shoulder pattern of the stock is lying. If the stock manages to close below this levels then the stock can drift to the levels of 2950 to 2980 where short term moving averages and gap is lying.

Resistance for the stock lies in the zone of 3250 to 3300 where 100 & 500 Daily SMA is lying. If the stock manages to close above this levels then the stock can move to the levels of 3330 to 3350 where the stock has opened a gap down on 26/11/2015.

The stock has formed a Inverse Head & Shoulder pattern on daily charts. The target for this pattern lies in the zone of 3500.

Broad range for the stock is seen from 2950 – 3000 on downside to 3300 – 3350 on upside.