Accumulate Dr Reddys, Cipla on dip: Karun Mutha

Accumulate Dr Reddys Laboratories and Cipla on dip, says Karun Mutha, HSBC Invest Direct.

Mutha told CNBC-TV18, "Pharma has been one of the most stable packs. Even on couple of days movement that we have seen, there have been accumulation signs seen particularly in frontline stocks like Dr Reddy’s or Cipla wherein post the numbers, which were also decent, we have seen some good accumulation happening."
He further added, "If you look at the open interest particularly stocks like Dr. Reddy’s and Cipla, the fall in open interest even on a correction is very marginal. So we have seen a long liquidation happening to only a very insignificant extent. So these are stocks which are likely to be recommended to accumulate at dips and probably some steam still left out particularly with respect to the derivatives data or the data which is seen on the open interest seems to suggest that there is some steam still left out and probably may provide an upside in the defensive state of steam that we are into."