Dr Reddy’s Labs recovery from its 52-week low of Rs355 is still in progress and further upside cannot be ruled out from this point.
For the past few weeks, it consolidated sideways in a range between Rs535-Rs590 levels.
On Monday, the stock broke out from this trading range. Daily chart suggests formation of higher bottom. Downside momentum has clearly diminished with oscillators like daily MACD daily and weekly RSI exhibiting bullish divergence.
We recommend traders to BUY the stock in the range of Rs608-625 with a stop loss of Rs598 for target of Rs650.