Derivative strategy on Dr Reddy's by HDFC Securities

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

Rationale:

-- 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