Technical calls by Religare Broking: Buy Dr Reddy's Lab, Ramco Cements

Weekly Technical Recommendations by Religare Broking Ltd.

Buy Dr. Reddy's Laboratories Limited

Last Close: Rs 2,815.70
 

Initiation range: Rs 2,790-2,800
 

Target: Rs 2,960
 

Stop loss: Rs 2,710
 

DRREDDY has been consolidating in a range while holding firmly above the support zone of moving averages ribbon (50, 100 and 200 EMA) on the multiple time frames. Indications are now in the favor of breakout ahead. We advise initiating fresh longs in the given range.

Buy The Ramco Cements Limited

Last Close: Rs 791.05
 

Initiation range: Rs 775-785

Target: Rs 840
 

Stop loss: Rs 760
 

RAMCOCEM has formed a cup and handle pattern (which generally act as a continuous pattern) on the weekly chart while holding above the support zone of long term moving averages. After the recent surge from its crucial support zone around 690 levels, it has witnessed a marginal dip, offering fresh buying opportunity to those who missed the chance earlier. We advise accumulating in the mentioned zone.

Buy Tata Chemicals Limited

Last Close: Rs 636.85
 

Initiation range: Rs 620-625

Target: Rs 665

Stop loss: Rs 605
 

Post breakout from its nine-month long consolidation phase, TATACHEM is currently consolidating around its major support zone of long term moving averages on daily chart. The chart pattern combined with positioning of the confirmation indicators is now pointing towards steady rise ahead. We thus suggest initiating fresh longs as per the mentioned levels.

Sell November Futures of Canara Bank

Last Close: Rs 207.15

Initiation range: Rs 209-211

Target: Rs 195

Stop loss: Rs 216

In line with other PSU banking counters, CANBK has also witnessed decent recovery of late and reached closer to its immediate hurdle of 100 EMA on the daily chart. Considering its chart pattern and overall downtrend, we see this rebound as shorting opportunity and expect decline to resume. We thus suggest traders to initiate fresh shorts within the mentioned zone.

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