DHFL has witnessed breakout today i.e. on Aug 14, supported with a significant rise in volume, after spending nearly three months or so in a consolidation range, closer to its support zone of multiple moving averages viz. 50 and 100 EMA on a daily chart. Its chart pattern combined with confirmation indicators are clearly pointing towards fresh momentum. Traders can create fresh longs in the given range.
Dr. Reddy's Laboratories
Last Close: Rs 2,278.45
Initiation range: Rs 2,270-2,280
Target: Rs 2,400
Stop loss: Rs 2,215
Dr Reddy's, after breakout from its consolidation zone, has retraced marginally of late and has formed a base around its price support level around 2025. It has again rebounded swiftly from thereon and found support around the support zone of 200 EMA on daily chart. We believe it’s an excellent buying opportunity especially for those who have missed it earlier.
Rec: SELL AUGUST FUTURES
Last Close: Rs 209.20
Initiation range: Rs 210-212
Target: Rs 192
Stop loss: Rs 220
Oil India has witnessed a sharp plunge today i.e. August 14 from its distribution pattern and likely to remain under pressure in the coming days. Considering the chart pattern and overall downtrend, we suggest creating fresh shorts on any intraday bounce in the given range.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.