Trade Idea of The Day - Dr Reddys Laboratories Ltd Target Rs. 28 - Religare Broking Ltd
Dr Reddys Laboratories Ltd
BUY 27 OCT 1200 CALL SELL 27 OCT 1250 CALL Entry Range 14 -16 Target 28 Stop Loss 9
Rationale
• On the weekly timeframe, DRREDDY is consolidating above the prolonged ascending trendline (200-WEMA line), indicating a major support base where buying interest typically revives.
• After a pullback from recent swing highs near the 1,400 zone, recent weekly candles demonstrate selling pressure absorption and stability right above the 1,120-1,160 demand zone.
• The key momentum indicator, RSI, is currently hovering near the 50 mark, and MACD momentum remains subdued in negative territory; the flattening slope suggests selling pressure is gradually exhausting.
• On the technical front, a decisive weekly close above immediate resistance at 1,200, backed by expanding volume, will confirm a structural bullish setup toward the higher resistance zones.
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SEBI Registration number is INZ00017433
