Derivative strategy on Dr Reddy's Lab by Nandish Shah, Assistant Vice President, PCG, HDFC Securities.
Buy Dr. Reddy's January Future at Rs 2669
Stop loss: Rs 2,640
Target: Rs 2,720
-- We have seen Long build up in Dr Reddy Futures’ where we have seen 4% Rise in Open Interest with the price rise of 1%.
-- The long build-up is seen during the January series till now also where we have seen over 10% rise in Open Interest with Dr Reddy rising by 3%
-- The stock price has given a breakout on the daily chart by closing above 2660 level.
-- The stock price is trading above its 5, 20 and 200 day SMA, Indicating bullish trend for the short to medium term.
-- Momentum Indicators and Oscillators like RSI and MACD turned positive on the weekly charts.