{"id":577301,"date":"2013-03-12T10:04:46","date_gmt":"2013-03-12T04:34:46","guid":{"rendered":"http:\/\/stockviz.biz\/index.php\/?p=577301"},"modified":"2013-03-12T10:12:47","modified_gmt":"2013-03-12T04:42:47","slug":"analysis-drreddy","status":"publish","type":"post","link":"https:\/\/stockviz.biz\/index.php\/2013\/03\/12\/analysis-drreddy\/","title":{"rendered":"Analysis: DRREDDY"},"content":{"rendered":"

Today\u2019s pick is DRREDDY [stockquote]DRREDDY[\/stockquote]. The stock started the year with an up-move to Rs. 1,800 levels. After experiencing resistance at those levels, the stock started its move down. It then saw head-and-shoulders bottom formation during May to July, and since then it has been on an up-trend. It saw the 52 weeks high of Rs. 1,970 in February, but since then was on a down-trend to find support on the trend-line. In the last three months, the stock moved -1%<\/strong><\/b> vs. +1 of the Nifty\u2019s.<\/p>\n

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

Oscillator RSI<\/a> and CMO<\/a> are in no man\u2019s land. The stock is currently trading in the middle of the Bollinger band<\/a>s. Short-term technical just saw 4X9 and 4X18 bullish<\/b> SMA cross-over combined with a Dragonfly bullish Doji<\/b> yesterday.<\/p>\n

The MACD<\/a> line has just penetrated the signal line in a bullish manner. However, the Long-term and short-term GMMA<\/a> lines are contracting, unable to provide any outlook for the stock.<\/p>\n

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

DRREDDY\u2019s average correlation<\/a> with the Nifty<\/a> is 0.35<\/b> which is positive<\/b>. The scrip will be replicating movement of Nifty. [stockquote]NIFTYBEES[\/stockquote]<\/p>\n

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

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

Given these technicals, we suggest a short-term BUY. <\/b>A long-term BUY <\/b>is also suggested based on the support provided by the trend-line. However, it is advisable to have a relaxed trailing stop-losses<\/a> level to book profits in case of a trend-reversal.<\/p>\n

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