Traders can accumulate the stock in the range of Rs 2,165-2,185 for the target of Rs 2,310 with a stop loss below Rs 2,097, says Rupak De of Bonanza Portfolio.
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Rupak De
Bonanza Portfolio
Dr Reddy's Labs has found support at the 200-Double Exponential Moving Average (DEMA) and moved up to some extent; in addition, price has moved above its previous “inflection point” on closing basis.
In the recent move, the stock has moved above its 38.20% Fibonacci Retracement level of the previous fall from Rs 2,387 to Rs 2,025.
On the weekly chart, a positive divergence is visible in the RSI (14). Traders can accumulate the stock in the range of Rs 2,165-2,185 for the target of Rs 2,310 with a stop loss below Rs 2,097.
Disclaimer: The author is a Technical Research Analyst at Bonanza Portfolio Ltd. The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.First Published on Aug 2, 2018 11:15 am