EquityPandit’s Outlook for Dr. Reddy for the week (May 23, 2016 – May 27, 2016):

DR. REDDY:

Dr Reddy closed the week on positive note gaining around 4.00%.

As we have mentioned last week that resistance for the stock lies in the zone of 2950 to 3000 where short term moving averages & 100 Daily SMA is lying. If the stock manages to close above these levels then the stock can move to the levels of 3100 to 3150 from where the stock has sold off. During the week the stock manages to hit a high of 3050 and close the week around the levels of 3034.

Support for the stock lies in the zone of 2750 to 2800 where the stock has formed a medium term bottom. If the stock manages to close below these levels then the stock can witness a freefall as virtually no support is visible and stock can drift to the levels of 2500.

Resistance for the stock lies in the zone of 3100 to 3150 from where the stock has sold off and 100 Daily SMA is lying, If the stock manages to close above these levels then the stock can move to the levels of 3200 to 3250 where 500 Daily SMA is lying.

Broad range for the stock is seen from 2900 – 2950 on downside to 3100 – 3150 on upside.