Dr. Reddy's Laboratories Limited Stock Forecast
Explanation to Bollinger's Bands
Bollinger Bands was created by John Bollinger in the early 1980s, its purpose is to define price action relative to the assets highs and lows. This technical indicator is used to identify buy and sell signals and has proven very well in doing so.
Bollinger Bands consist of a set of three curves drawn in relation to securities prices. The middle band is a measure of the intermediate-term trend, usually a simple moving average, that serves as the base for the upper and lower bands. The interval between the upper and lower bands and the middle band is determined by volatility, typically the standard deviation of the same data that were used for the average. StockInvest.us uses Bollingers suggested 20 day average.
Middle Bollinger Band = 20-period simple moving average
Upper Bollinger Band = Middle Bollinger Band + 2 * 20-period standard deviation
Lower Bollinger Band = Middle Bollinger Band - 2 * 20-period standard deviation
BandWidth defines the current width of the band.
%b defines the current position within the band.
BandWidth = (Upper Bollinger Band - Lower Bollinger Band) / Middle Bollinger Band
%b = (Last - Lower Bollinger Band) / (Upper Bollinger Band - Lower Bollinger Band)
Live Samples:
Bottlenecks in bandwidth indicate an upcoming change. Break up through the moving average line or continuous movements above the moving average line indicate a break up, and vice versa.
Source: http://www.bollingerbands.com
Green day on Tuesday for Dr. Reddy's Laboratories Limited stock after gaining 0.387%
(Updated on Jun 25, 2024)
The Dr. Reddy's Laboratories Limited stock price gained 0.387% on the last trading day (Tuesday, 25th Jun 2024), rising from ₹6,054.95 to ₹6,078.40. It has now gained 4 days in a row. It will be exciting to see whether it manages to continue gaining or take a minor break for the next few days. During the last trading day the stock fluctuated 1.32% from a day low at ₹6,016.05 to a day high of ₹6,095.20. The price has risen in 6 of the last 10 days but is still down by -0.45% for this period. Volume has increased on the last day along with the price, which is a positive technical sign, and, in total, 71 thousand more shares were traded than the day before. In total, 395 thousand shares were bought and sold for approximately ₹2.40 billion.
The stockhas broken the falling short-term trend up. Firstly a slower falling rate is indicated, but this may very well be an early signal of a trend shift. On the reaction, there will be support on the roof of the current trend broken, which is ₹6,067.34, a level that may pose a second chance to hit a runner. According to fan-theory ₹6,458.21 will be the next possible trend-top level and thereby pose a resistance level that may not be broken at the first attempt.
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DRREDDY.NS Signals & Forecast
The Dr. Reddy's Laboratories Limited stock holds buy signals from both short and long-term Moving Averages giving a positive forecast for the stock. Also, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down, there will be some support from the lines at ₹6,021.19 and ₹5,939.57. A breakdown below any of these levels will issue sell signals. Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). Volume is rising along with the price. This is considered to be a good technical signal. Some negative signals were issued as well, and these may have some influence on the near short-term development. A sell signal was issued from a pivot top point on Monday, June 10, 2024, and so far it has fallen -0.454%. Further fall is indicated until a new bottom pivot has been found.
Support, Risk & Stop-loss for Dr. Reddy's Laboratories Limited stock
Dr. Reddy's Laboratories Limited finds support from accumulated volume at ₹6,056.35 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.
In general the stock tends to have very controlled movements and with good liquidity the risk is considered very low in this stock. During the last day, the stock moved ₹79.15 between high and low, or 1.32%. For the last week the stock has had daily average volatility of 1.66%.
Our recommended stop-loss: ₹5,859.91 (-3.59%) (This stock has low daily movements and this gives low risk. There is a sell signal from a pivot top found 14 days ago.)
Trading Expectations (DRREDDY.NS) For The Upcoming Trading Day Of Wednesday 26th
For the upcoming trading day on Wednesday, 26th we expect Dr. Reddy's Laboratories Limited to open at ₹6,063.22, and during the day (based on 14 day Average True Range), to move between ₹5,960.85 and ₹6,195.95, which gives a possible trading interval of +/-₹117.55 (+/-1.93%) up or down from last closing price. If Dr. Reddy's Laboratories Limited takes out the full calculated possible swing range there will be an estimated 3.87% move between the lowest and the highest trading price during the day.
Since the stock is closer to the support from accumulated volume at ₹6,056.35 (0.36%) than the resistance at ₹6,106.15 (0.46%), our systems sees the trading risk/reward intra-day as attractive and believe profit can be made before the stock reaches first resistance..
Is Dr. Reddy's Laboratories Limited stock A Buy?
Dr. Reddy's Laboratories Limited holds several positive signals, but we still don't find these to be enough for a buy candidate. At the current level, it should be considered as a hold candidate (hold or accumulate) in this position whilst awaiting further development.
Current score: -0.497 Hold/Accumulate Unchanged
Predicted Opening Price for Dr. Reddy's Laboratories Limited of Wednesday, June 26, 2024
Fair opening price June 26, 2024 | Current price |
---|---|
₹6,063.22 ( 0.250%) | ₹6,078.40 |
The predicted opening price is based on yesterday's movements between high, low, and closing price.
Trading levels for DRREDDY.NS
Fibonacci Support & Resistance Levels
Level | Price | |
---|---|---|
R3 | 6,142.37 | 1.05% |
R2 | 6,112.13 | 0.555% |
R1 | 6,093.45 | 0.248% |
Price | 6,078.40 | |
S1 | 6,032.98 | -0.747% |
S2 | 6,014.30 | -1.05% |
S3 | 5,984.07 | -1.55% |
Accumulated Volume Support & Resistance Levels
Level | Price | |
---|---|---|
R3 | 6,218.75 | 2.31% |
R2 | 6,157.90 | 1.31% |
R1 | 6,106.15 | 0.457% |
Price | 6,078.40 | |
S1 | 6,056.35 | -0.363% |
S2 | 5,965.30 | -1.86% |
S3 | 5,791.85 | -4.71% |
DRREDDY Dividend Payout History
# | Ex-Date | Pay Date | Amount | Yield | |
---|---|---|---|---|---|
1 | Jul 16, 2024 | Jul 16, 2024 | Aug 28, 2024 | ₹40.00 | 0.658% |
2 | Jul 11, 2023 | Jul 11, 2023 | Jul 11, 2023 | ₹40.00 | 0.774% |
3 | Jul 12, 2022 | Jul 12, 2022 | Jul 12, 2022 | ₹30.00 | 0.669% |
4 | Jul 11, 2022 | Jul 11, 2022 | Jul 11, 2022 | ₹30.00 | 0.667% |
5 | Jul 09, 2021 | Jul 09, 2021 | Jul 09, 2021 | ₹25.00 | 0.458% |
FAQ
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