Dr Reddy’s Laboratories stock found support at ₹5,600 three weeks ago. It bounced off this level and has been gaining since then. After surpassing the resistance at ₹6,000 last week, the stock went to consolidation phase. That is, it has been oscillating between ₹6,000 and ₹6,130. But on Tuesday, it broke out of this range, opening the door for further upside. Nevertheless, there is a chance for the stock to see a minor corrective decline in price before witnessing the next leg of rally. So, traders can buy now at ₹6,165 and on a dip to ₹6,100. Place stop-loss at ₹5,980 at first.
Raise this to ₹6,050 when the share price hits ₹6,250. Tighten the stop-loss further to ₹6,280 when the stock touches ₹6,350. Exit at ₹6,400.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)