* The stock once again reversed after facing resistance of horizontal resistance line and slipped to 4-day closing low.
* Due to recent reversal, RSI and Stochastic had given negative cross-over and MACD is also on the verge of bearish cross-over.
* As per the current daily set-up, we believe that the stock will remain in pressure for next couple of days.
* On the lower side, the stock will initially find support around its long-term moving average 100-day SMA and then around prior swing low, which are placed at Rs2,300 and Rs2,170 respectively.
* Hence, fresh short position can be initiated only in the range of Rs2425-2455 for the target of Rs2300-2170 with a stop loss of Rs2530.
DRREDDY (PREVIOUS CLOSE: 2426) SELL Fresh long position can be initiated in the range of Rs2425-2455 for the target of Rs2300-2170 with a strict stop loss of Rs2530.
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