Dr Reddy : LongDR. Reddy’s Laboratories is showing a falling wedge pattern, which is typically considered a bullish reversal signal.
EMA Analysis: The price is trading above the 10, 20, and 200 EMAs, confirming the short-, medium-, and long-term bullish trend. A successful breakout above the descending trendline increases confidence in a sustained upward move. The recent crossover of 10 EMA above the 20 EMA further strengthens bullish momentum.
Volume Analysis: Bullish candles during the breakout phase are supported by rising volumes, indicating robust buying interest and solidifying the validity of the breakout. Volumes have reached above 430K, notably higher than previous averages, suggesting institutional participation.
RSI Analysis: The RSI is at 59.78, positioned securely above the midline (50) but still below any overbought condition (70). This level demonstrates enough momentum for further upside, leaving room for the rally to extend before any corrective move.
Trade Setup Recommendation
Parameter Value/Action
Entry: Above ₹1,285 after confirmation
Stop Loss: Below ₹1,265 (below breakout low/EMAs)
Target 1: ₹1,295–₹1,310 (near-term resistance)
Target 2: ₹1,340 (extension, if momentum holds)
RSI Condition: Hold as long as RSI remains < 70
Buy on confirmation above ₹1,285 with the given stop loss and targets; volumes and RSI both support entry at current levels.
If price closes below the 200 EMA or RSI falls below 50, reconsider the bullish trade. This setup leverages strong technical signals and is suitable for short- to medium-term trading.
The analysis and trade setup provided above are for educational purposes only and do not constitute investment advice. Always conduct independent research, consider personal financial circumstances, and consult with a qualified financial advisor before making trading or investment decisions. Trading stocks and financial instruments involve risks, including the possibility of losing capital, and past performance does not guarantee future results
