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Trade Spotlight: What should investors do with Cipla, Dr Reddy’s & Infosys?

Some of the stocks in focus were Dr Reddy’s Laboratories, which gained nearly 5 percent with strong volumes, Cipla that rose more than 2 percent, and Infosys which fell 1 percent after hitting a fresh 52-week high.

April 13, 2021 / 08:07 AM IST
 
 
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Indian markets witnessed a knee-jerk reaction on Monday following a rise in COVID cases as well as expectations of further curbs leading to lockdown in various states.

The S&P BSE Sensex and Nifty50 fell more than 3 percent to record their second-biggest fall after February 26 of the year 2021.

Sectorally, selling pressure was seen in realty, infrastructure, public sector, metals, power, auto finance, and banking stocks.

On the broader markets front, the S&P BSE Midcap index was down more than 5.3 percent while the S&P BSE Smallcap index closed lower by 4.8 percent.

Some of the stocks in focus were Dr Reddy’s Laboratories, which gained nearly 5 percent with strong volumes, Cipla that rose more than 2 percent, and Infosys which fell 1 percent after hitting a fresh 52-week high.

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Here is what experts said about these stocks

Expert: Vikas Jain, Senior Research Analyst at Reliance Securities

Cipla: Hold | Target: Rs 980

After a sustained underperformance in the first quarter of CY20, the sector and the stock has gained momentum in the current month.

It withholds the 200-Days SMA and recovered fully to scale an all-time high with strong volumes. The RSI has moved to the higher band of 80 levels so the risk-to-reward is not in favour of fresh longs.

We believe one can hold the stock for a target of Rs 980 from current levels.

Dr Reddy Labs: Buy | Target: Rs 5700

The stock has witnessed a breakout from its 200-days average with strong volumes and we have seen higher delivery-based buying over the past few days.

We believe that the positive momentum can continue and the stock can scale a new all-time high beyond Rs 5500 levels which it achieved in September 2020.

The stock has strong support near to its 200-Day average of Rs 4,700 levels and any decline near it should be used to accumulate the stock.

Infosys: Hold | Target: Rs 1500

The stock has doubled in the last year with sustained positive price performance on a quarter-on-quarter basis.

Infosys is expected to announce a buyback during the week and would remain in focus over the next few days.

The trend reversal level is placed at Rs 1330 levels.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Kshitij Anand is the Editor Markets at Moneycontrol.

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