Dr. Reddy's Laboratories (Cash): down trend since several months and in that pessimism stock registered a fresh 52-weeks low of 1901.
- Subsequently, we saw decent pullback towards 2615 however stock resumed its down trend and we saw vertical slide in recent times. As a result, stock erased almost all its previous gains and hit a low of 2005.55
- Despite the sharp sell-off the weekly RSI (14) refused to go below 40 levels.
- Looking at the monthly chart, the August & September 2017 candle resembles a formation of ‘Bullish Harami’ pattern. The said pattern will be negated if stock breaches 1901 levels.
- Considering the overall chart structure, we expect trend reversal in this counter hence we advocate traders to buy this stock in a range of 2185 - 2145.
Recommended Action: Buy.
Bharti Airtel (Cash): After posting an all-time high of around 561; stock corrected gradually and found support near 472.
- Subsequently, stock made an valiant attempt to surpass its previous all-time higher however failure to cross such levels triggered fresh sell-off and stock nosedived sharply.
- During last week, stock found some buying interest near 411 as this level was coincided with the upward sloping trend line drawn from the bottom of December 2016.
- Last week candle resembles a formation of Inverted Hammer pattern. The said pattern has significance as it occurred at the trend line. Also, the daily candle formed Bullish Engulfing pattern on last Monday.
- The Higher Top Higher Bottom formation on weekly chart is intact hence one can buy this stock at current level 422.50 with a price target of 480 & 510 respectively. Stop should be placed below 479.
Click here to read the full report
Recommended Action: Buy.
Way2Wealth today has established itself as one of India’s ‘Premier Investments Consultancy Firms’, known for making investing simpler, more understandable and profitable for the investors. They offer a wide range of products & services viz: Equity, Derivatives, Currency Futures, Commodities Trading, IPO's, Mutual Funds, Portfolio Management Services & Depository Services.
For more information please write in to firstname.lastname@example.org
Disclaimer: The author has taken due care and caution to compile and analyse the data. The opinions expressed above are only the views of the author, and not a recommendation to buy or sell. Neither the author nor IndiaNotes.com accept any liability whatsoever arising from the use of any of the above contents.