Dr. Reddy’s Laboratories Ltd. was listed on NSE on 30 May 2003 since then the performance of this company has rocked this entire pharma sector. Looking at the daily chart we see there is some bearish pattern developed in this stock and we are sure that weakness is likely to come here and pull the stock southwards. Technical levels suggests that there is no support until 1360 level, so our recommendation is to sell this stock at CMP of 1585 for the targets of 1450 and 1360 level, traders also keep their stops just above the 1610 level. Surely a very good risk reward ratio, with limited risk and huge profit. The short call suggested here should be traded on Futures contract only and should not be taken as option contract (CALL/PUT).
Fundamentally DRREDDY is very strong and look forward for more strong growth from here. At current levels this stock trades at PE of 17 and this is very attractive for the stocks like this one.
About Bhaveek PatelBhaveek Patel is one of the most successful traders, technical analyst, and investor, his areas of interest include stock market, forex, and gold trading. Apart from this, he is often seen in the golf course. He is having more than 10 years of experience in trading, had placed his first order on 19 June 2006 with IndiaInfoline.
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