{"id":273550,"date":"2013-01-14T11:11:10","date_gmt":"2013-01-14T05:41:10","guid":{"rendered":"http:\/\/stockviz.biz\/index.php\/?p=273550"},"modified":"2013-01-14T11:14:04","modified_gmt":"2013-01-14T05:44:04","slug":"analysis-drreddy-rdy-2","status":"publish","type":"post","link":"https:\/\/stockviz.biz\/index.php\/2013\/01\/14\/analysis-drreddy-rdy-2\/","title":{"rendered":"Analysis: DRREDDY (RDY)"},"content":{"rendered":"

Today\u2019s pick is DRREDDY [stockquote]DRREDDY[\/stockquote]. The stock started the year with an uptrend to see the Rs. 1,800 levels. After hovering for a week around the levels it corrected itself to Rs. 1,525 level. Since then the stock has been on an uptrend and it just saw its 52-week\u2019s high of Rs.1,927 during last week. In the last three months, the stock has moved +10%<\/strong><\/b> vs. +5% of the Nifty\u2019s. <\/p>\n

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

Oscillators RSI<\/a> and CMO<\/a> are in the over-bought territory suggesting a short-term correction for stock. The stock just experienced a bullish<\/b> Dragonfly Doji. <\/p>\n

The MACD<\/a> line is moving towards the signal line, accompanied by the falling histogram levels such movement is suggesting a short-term bearish<\/b> move for the stock. The long-term and short-term GMMA<\/a> lines are well dispersed and are suggesting a bullish outlook<\/b> for the scrip. <\/p>\n

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

<\/b> <\/p>\n

DRREDDY\u2019s average correlation<\/a> with the Nifty<\/a> is 0.34<\/strong> <\/strong>is positive<\/strong>. The scrip will be replicating the movement of Nifty. [stockquote]NIFTYBEES[\/stockquote] <\/p>\n

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

DRREDDY has a historical volatility<\/a> in the range of 0.25 to 0.45. The scrip\u2019s volatility currently is in the lower end of the range. <\/p>\n

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

Analysts are quite positive about the scrip which is a very good sign for the stock. Traders are advised to keep an eye on the forthcoming results as a drift from the analysts expectation can bring about a drastic change for the stock. <\/p>\n

Given these technicals, we suggest a short-term Hold. <\/b>Also looking at the up-trend in place we suggest a <\/b>long-term Buy<\/b> for the script. It will be beneficial to have trailing stop-losses<\/a> in place, in order to book profits if a trend-reversal were to take place. <\/p>\n

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