EquityPandit’s Outlook for Dr. Reddy for the week (January 16, 2017 – January 20, 2017) :

DR. REDDY:

Dr Reddy closed the week on negative note losing around 5.70%.

As we have mentioned last week that support for the stock lies in the zone of 3150 to 3170 where 200 Daily SMA and medium term moving averages are lying. If the stock manages to close below these levels then the stock can drift to the levels of 3100 to 3120 from where the stock has broken out on intraday basis. During the week the stock manages to hit a low of 2943 and close the week around the levels of 2980.

Support for the stock lies in the zone of 2920 to 2940 where the stock has formed a bottom in the month of July-2016. If the stock manages to close below these levels then the stock can drift to the levels of 2800 to 2830 where the stock has formed a bottom in the month of May-2016.

Resistance for the stock lies in the zone of 3020 to 3040 where Fibonacci ratio is lying. If the stock manages to close above these levels then the stock can move to the levels of 3080 to 3100 from where the stock has broken down on intraday basis.

Broad range for the stock is seen from 2920 – 2940 on downside to 3080 – 3100 on upside.