Technical Analyst, E Mathew is of the view that Dr Reddys Laboratories may touch Rs 690. If it sustain above this level, it can see Rs 760, he added.

Mathew told CNBC-TV18, "The uptrend in Dr Reddy’s Laboratories started in February; around 12th February we have seen a low of around Rs 507-508. This stock has never looked back because it certainly been a pattern almost a classical pattern of higher bottoms and higher tops. Right now this looks like a tradable move though we had a sharp spike up yesterday.

He further added, "I would be more comfortable buying this stock around Rs 650 zone, a comfortable level and I would be comfortable buying this stock around Rs 625. But the stock has broken out above good resistance at around Rs 655-660 zone and surely it’s heading towards the first target of Rs 690 and if it’s able to sustain above Rs 690, I wouldn’t be surprise if we see the stock around Rs 760. Incidentally this price of Rs 760 is what we saw when the market was at its peak in January."

"So one can understand how the pharma stocks have been under performing for quite sometime and now this era of under performance is over and pharma is certainly one sector which one would certainly look at as an out performer at least for the coming 6-12 months."          

Disclosure: It is safe to assume that analyst and his clients may have an interest in the stocks/sectors discussed.