Short Dr Reddys Laboratories: Sukhani

Sukhani told CNBC-TV18, " Dr Reddys Laboratories is a sell and it is a surprise. It started falling and we thought that this is a correction, but it was not. It is now breaking all kinds of support levels and making a distribution pattern that promises that what we are looking at is an intermediate downtrend, not just a short-term correction.”

He further added, “I think perhaps it is company specific, but whatever the reason Dr Reddys is now a short selling idea. Even in a market that could go up probably this one is likely to underperform.”

The share touched its 52-week high Rs 1,968.60 and 52-week low Rs 1,555.00 on 25 January, 2013 and 19 June, 2012, respectively. Currently, it is trading 8.54% below its 52-week high and 15.79% above its 52-week low. Market capitalisation stands at Rs 30,579.91 crore.

Disclosure: I have no holdings or interest in the stock discussed.