Ashish Chaturmohta of Fortune Group recommends going long in Dr Reddy's Laboratories for a target of Rs 3700.
Ashish Chaturmohta of Fortune Group told CNBC-TV18, "In pharmaceuticals, we are witnessing a very strong addition of a long build up particularly in counters like Dr Reddy's Laboratories, Lupin or even for that matter Aurobindo Pharma. I think they are showing very good strength from current level. Dr Reddy's Labs for last two days have seen addition of 12 percent yesterday itself, the addition was around 8-9 percent, clearly on the long side. The stock has given a fresh breakout above Rs 3,500 and also has formed a major double bottom formation."
"All this indicates that the stock has the potential to cross its previous all time high which was around Rs 3,800 and can target somewhere around Rs 4,000 but in short-term I think one can initiate a long position keeping a small stop loss of Rs 3,540 for an upside target of Rs 3,700," he added.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.