EquityPandit’s Outlook for Dr. Reddy for the week (January 04, 2016 – January 08, 2016):

DR. REDDY:

Dr Reddy closed the week on positive note gaining around 3.30%.

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 3172 and retraced to close the week around the levels of 3108.

Support for the stock lies in the zone of 3050 to 3100 from where the stock has broken down. If the stock manages to close below this levels then the stock can drift to the levels of 2940 from where the stock has broken out in the month of August – 2014.

Strong resistance for the stock lies in the range of 3200 where 500 Daily SMA and 100 Weekly SMA is lying. If the stock manages to close above the levels of 3200 then the stock can move to the levels of 3300 where 100 Weekly SMA is positioned.

Broad range for the stock is seen from 2950 – 3000 on downside to 3200 – 3250 on upside.