{"id":227721,"date":"2012-11-05T12:08:51","date_gmt":"2012-11-05T06:38:51","guid":{"rendered":"http:\/\/stockviz.biz\/index.php\/?p=227721"},"modified":"2012-11-05T12:08:52","modified_gmt":"2012-11-05T06:38:52","slug":"analysis-drreddy-rdy","status":"publish","type":"post","link":"https:\/\/stockviz.biz\/index.php\/2012\/11\/05\/analysis-drreddy-rdy\/","title":{"rendered":"Analysis: DRREDDY (RDY)"},"content":{"rendered":"

Today\u2019s pick is [stockquote]DRREDDY[\/stockquote]. The last year saw the stock trading in a 1500 to 1800 range and the stock is in an up-trend since July lows. In the last three month period, the stock was up 5.5% vs. the Nifty\u2019s 8.3%. The stock is approaching 52-week resistance at 1815 levels, after bouncing off the support at 1500 levels. <\/p>\n

\"image\"<\/a> <\/p>\n

Oscillators RSI<\/a> and CMO<\/a> are at currently at 64 and 39 and are closing in towards the over-bought territory. <\/p>\n

MACD<\/a> line and the signal line are departing from each other on a positive note; the histogram<\/a> levels are rising as well in-sync with the short-term up-trend. <\/p>\n

The GMMA<\/a> chart shows both long-term and short-term lines fanning out. If this continues, it would be extremely bullish for the stock. <\/p>\n

\"image\"<\/a> <\/p>\n

DRREDDY\u2019s average correlation<\/a> of 0.33 with the Nifty<\/a> is positive. The stock will not replicate the movements of Nifty closely because of the low co-efficient. [stockquote]NIFTYBEES[\/stockquote] <\/p>\n

\"image\"<\/a> <\/p>\n

DRREDDY has a historical volatility<\/a> in the range of 0.25 to 0.45 which is a very narrow range. The scrip\u2019s volatility is currently in the middle range and hence should not be a concern. <\/p>\n

\"image\"<\/a> <\/p>\n

Analysts already have high expectations regarding this stock, as is evident from the very high proportion of the buy and outperform calls. A single earnings miss from the firm, or an analyst downgrade might trigger a steep slide in the stock.  Also, insiders have sold about Rs. 3.5 Cr. worth of NCD\u2019s in the last one month period. <\/p>\n

Looking at these technicals a short-term hold<\/b> is suggested. A break-out\/continued resistance at the 1800 levels will be essential to direct the stock either to an up-trend\/down-trend. <\/p>\n

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