EquityPandit’s Outlook for Dr. Reddy for the week (March 21, 2016 – March 23, 2016):

DR. REDDY:

Dr Reddy closed the week on negative note losing around 1.50%.

As we have mentioned last week that 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. During the week the stock manages to hit a high of 3247 and close the week around the levels of 3164.

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 3050 – 3100 on downside to 3300 – 3350 on upside.