Dr Reddy NSE:DRREDDY appears to have topped out on 15 min chart around 2070 levels.
I can see a negative divergence here with price coming down slowly.
Good opportunity to short if it stays below 2070 for a first target around 2035 and next target around 2000 levels.
Disclaimer: Views expressed here are my own, and should not be interpreted as an Investment Advice. Please consult your Financial Advisor for investments.
USFDA didn't find anything in the last audit. This remains as a positive feeling for this bitten down pharmacy stock (Sector consolidated since 2013/2014 at its lowest levels.). I am long here also! I will feel sad if I loose money!
nano6yogesh
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@Pranabkolkatay, The idea I gave is for short term/Intraday, in the long run it may go up. I personally feel Pharma sector has been beaten down for too long. One cannot be sure when, but whenever a turnaround happens we will see good pharma stocks skyrocket.
Pranabkolkatay
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@nano6yogesh, Thank you for your kind sharing. It is very difficult tvo find the bottom of an export oriented sector like pharma. However I would like to share following. 1. In the month of April one foreign brokerage firm gave buy call on Cadila Health care. That time Nifty was drifting down to10000. 2. In the month of May China declared reduction on import duty for Cancer drug from India to the tune percent. Companies like Merck and Aurobindo should get direct benefit from that. Merck is probably one of the best stock now for INVESTOR. 3. It is the DR Reddy company that probably the first company where USFDA didn't find any objection in one of its unit after inspection and that's a very welcome beginning as no news is a good news for the sector as whole. I believe by this time many other companies have probably geared up themselves to get compliance from USFDA in coming visit. 4. Last Thursday CLSA declared that bottom might has been reached for Pharma sector and stocks rallied on Friday. I have my enough reasons to take a position in June series because I have strong reasons to believe it might go up at least by 10% in short term. Besides Technical charts often provide conflicting results when generated by different chartists. I have respect to all of them and to err is human but my findings are strong and probable investor or trader will rather buy the stocks more now as it has run up by 10-12% from bottom.