Buy Dr Reddy’s Laboratories, target Rs 2822: Hadrien Mendonca

Hadrien Mendonca IIFL

Dr Reddy’s Laboratories has been trading in a tight trading range for the past five weeks and has finally broken out from a consolidation pattern on the daily chart.

During the consolidation phase, the stock has convincingly managed to sustain above its crucial 50-DEMA support zone. Other momentum oscillators indicate that the stock has the potential to move higher towards its target of Rs 2822 in the near-term.

(The author is a Senior Technical Analyst, IIFL)

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