After breaking out 4135 levels on 29 July 2020 it made a new high of 5512.65 on 21 Sep 2020; 5443.50 on 12 Jan 2021 and 5614.60 on 07 July 2021. It can be observed that the stock price has a good support at 4686 levels and its next support is at 4135.
The stock price has been in consolidation for the past few days now. It is interesting to see if it continues the uptrend or tests its next support levels.
After taking steep corrections from higher levels, now the Dr. Reddy stock prices are hovering around the next support levels of 4686.00 on the daily price chart. Moreover, the prices are trading at 40 RSI and moving towards 30 RSI which can be an oversold zone.
What do we expect next?
For the past few days, the stock has been consolidating. After making its high of 5614.60 on 06th July 2021 the stock prices made a correction and it is trading around 4686.60 levels for a few days. Price Action traders and investors can find opportunity on the next breakout after a successful confirmation.
AS PER FIBONACCI LEVELS
The Stock is trading in between 0.618 & 0.786 Levels as per Fibonacci Levels. We expect 4947.02 as our next target in DR Reddy and there are chances of retracement from 4422.93 levels according to the concept of Fibonacci. If it breaks and sustains above 4947.02, we can see next targets of 5614.60 i.e., 1.0 levels of Fibonacci and if breaks down 4422.93 levels then the next targets will be 4054.83 i.e., 0.50 levels as per Fibonacci retracements.
Note:- This is not a buy/sell advice. It’s just an analysis by one of our professional traders. Consult your financial advisor before investing.