Lupin, Dr Reddy's Labs, Gujarat Gas: What should be your trading strategy for these stocks?

Domestic stock indices on Tuesday erased entire intraday gains to settle flat. The BSE Sensex shed 2.92 points to close at 61,761.33. On the other hand, NSE's Nifty added 1.55 points to end at 18,265.95.

Select results-bound stocks including Lupin, Dr Reddy's Laboratories and Gujarat Gas were ni the limelight. Here is what Pravesh Gour, Senior Technical Analyst at Swastika Investmart has to say on these stocks ahead of Wednesday's trading session:

Lupin | Buy | Target Price: Rs 800-840 | Stop Loss: Rs 690
Lupin witnessed a breakout of a rounding bottom formation with strong volumes on the daily chart. Rounding bottoms are found at the end of extended downward trends and signify a reversal in long-term price movements. The structure of the counter becomes impressive for long term traders, as it is trading above its key moving averages. MACD is supporting the current strength whereas the momentum indicator RSI is also positively poised. On the upside, the Rs 800 level is the neckline and an immediate hurdle; above this, one can expect a move towards the Rs 840 level. On the downside, a cluster of moving averages at around Rs 690 could be a strong demand zone in any correction.

Dr Reddy's Laboratories | Buy | Target Price: Rs 5,200-5,300 | Stop Loss: Rs 4,600

Dr Reddy's Laboratories' long-term structure is bullish, as it is making higher high-low formations. The stock witnessed a breakout of trend-line resistance and retested its breakout levels at around Rs 4,750 level. On the upside, the Rs 5,000  level is an immediate hurdle; above this, one can expect a move towards Rs 5,200–5,300 level. On the downside, the Rs 4,600 level is the next major support area.

Gujarat Gas | Avoid | Target Price: Rs 5,200-5,300 | Stop Loss: Rs 4,600
Gujarat Gas is moving in a long consolidation and trying to form a base at around Rs 440. The overall structure is distorted as it trades below key moving averages, but it has a demand zone near Rs 440–450 levels. On the upside, the Rs 500 level is an immediate susceptible area; above this, one can expect a run-up towards Rs 520 level in the near term.


(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Business Today.)

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