Anand Rathi recommends buy on Dr.Reddys, Cipla and Piramal Enterprises

Stock picks by Anand Rathi: DR Reddy shows a strong uptrend with higher highs and higher lows on a weekly scale

DRREDDY

DR Reddy shows a strong uptrend with higher highs and higher lows on a weekly scale, indicating sustained upward momentum and bullish sentiment.

Recent trading saw support at the middle Bollinger band, suggesting a potential rebound. The stochastic oscillator remained resilient, avoiding oversold conditions, and showing a bullish crossover near 25 levels on the weekly scale.

This alignment suggests a favourable moment for traders to consider long positions, with entry recommended between Rs 6,275 - Rs 6,350 for a projected upside target of Rs 6,700.

To manage downside risk, a stop-loss near Rs 6,111, based on daily closing prices, is advised.

 

PEL

Currently, PEL has found support at the 0.618 per cent retracement level from its previous upward movement between Apirl 03, 2023 and September 11, 2023.

Before this, the stock consolidated within the range of Rs 820 - Rs 900 for approximately a month. On the indicator side, weekly stochastics exhibit regular bullish divergence on a weekly scale, suggesting a favourable buying opportunity.

Hence, initiating long positions within the range of Rs 945 - Rs 965 with an upside target of Rs 1,060 is recommended. A stop-loss near Rs 902, based on daily closing prices, is advised to manage potential downside risk.

NOTE: If the price is making lower lows (LL), but the oscillator is making higher lows (HL), this is REGULAR BULLISH DIVERGENCE

CIPLA

CIPLA demonstrates a robust uptrend, marked by higher highs and higher lows on a weekly scale, signalling sustained upward momentum and bullish sentiment.

Recent trading sessions found support at the middle Bollinger band, hinting at a potential rebound. Additionally, the stochastic oscillator showed resilience and indicated hidden bullish divergence, along with a bullish crossover, further reinforcing the bullish outlook.

This alignment presents a favourable opportunity for traders to consider long positions, with an entry suggested between Rs 1,400 - Rs 1,430 and a projected upside target of Rs 1,555.

To manage downside risk, a stop-loss near Rs 1,345, based on daily closing prices, is recommended.

NOTE: If the price is making Higher lows (HL), but the oscillator is making Lower lows (LL), this is HIDDEN BULLISH DIVERGENCE

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Disclaimer: Jigar S Patel is senior manager - technical research analyst at Anand Rathi Shares and Stockbrokers. Views expressed are personal