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Dr. Reddy's Laboratories
* Dr. Reddys Lab has gave a rising trend line breakout on daily chart and sustaining well above the same.
* Stock moved above its previous swing high of 2942 on weekly chart (marked with horizontal trend line in above chart).
* The price breakout is also supported by trend line breakout in RSI on weekly scale, indicating further momentum in coming weeks.
* Recently, we also witnessed a Golden Crossover of 50 EMA above 200 EMA on weekly chart, which shall have a positive impact on price in near future.
* Going forward, we are expecting stock to continue its positive momentum towards 3230 in coming weeks. Hence, any dips upto 2920 shall be used as buying opportunity with a stop-loss of 2840 on closing basis.
Buy Dr. Reddy's Laboratories Ltd SL 2840 Target 3230 CMP 2967
* The chart structure of Lupin is very similar to that of Nifty Pharma index as the stock made a Hammer candle on monthly chart and Morning Star Pattern on weekly chart at recent lows.
* Currently, we are witnessing Inverse Head and Shoulder pattern breakout on daily chart.
* Also, the stock is in verge of giving breakout from the Falling Trend line on daily scale (see exhibit).
* RSI oscillator is now sustaining well above its immediate hurdle after four failed attempt to cross 60 - 62 levels and thus indicating momentum to pick-up in coming days.
* Looking at current chart structure, we are expecting the stock to rally towards 875 levels in coming weeks.
* Thus, traders are advised to buy the stock with a stop-loss of 745 on closing basis.
Buy Lupin Ltd SL 745 Target 875 CMP 788
* IPCA Labs is moving in a strong uptrend by continuously making higher highs on weekly and monthly chart.
* The stock has seen tremendous outperformance from last couple of years and continued to trade around 52 week's high despite the previous fall in Pharma index
* Recently, price came out from the consolidation phase of last seven months with decent volumes, which is a good sign for the stock.
* In recent past, we witnessed healthy volumes on green candles, while red candles were on back of low volumes, which clearly indicates more of buying interest among the market participants.
* Considering overall chart structure, we are expecting parabolic move in the stock towards 1350 levels in coming 2 - 3 months.
* Thus, we are recommending to buy the stock at current juncture and on dips to 1070 with a stop-loss of 1020 on closing basis.
Buy IPCA Laboratories Ltd @ 1070 - 1115 SL 1020 Target 1350 CMP 1109
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