Dr Reddy's Laboratories Ltd 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
Dr Reddy's Laboratories Ltd stock upgraded from Hold/Accumulate to Buy Candidate after Monday trading session.
(Updated on Apr 22, 2024)
The Dr Reddy's Laboratories Ltd stock price gained 1.42% on the last trading day (Monday, 22nd Apr 2024), rising from $71.14 to $72.15. During the last trading day the stock fluctuated 1.06% from a day low at $71.47 to a day high of $72.23. The price has been going up and down for this period, and there has been a -2.1% loss for the last 2 weeks. Volume has increased on the last day along with the price, which is a positive technical sign, and, in total, 4 thousand more shares were traded than the day before. In total, 111 thousand shares were bought and sold for approximately $8.03 million.
The stock is at the lower part of a horizontal trend in the short term, and normally this may pose a good buying opportunity, though a breakdown through the bottom trend line at $70.91 will give a strong sell signal and a trend shift may be expected. Given the current horizontal trend, you can expect Dr Reddy's Laboratories Ltd stock with a 90% probability to be traded between $70.92 and $77.61 at the end of this 3-month period. A break of a horizontal trend is often followed by a large increase in the volume, and stocks seldom manage to go directly from the bottom of a trend up to the top. Stocks turning up in the middle of a horizontal trend are therefore considered to be potential runners.
Ready to grow your portfolio? Here's your beginner's guide to opening a free brokerage account.
RDY Signals & Forecast
A buy signal was issued from a pivot bottom point on Thursday, April 18, 2024, and so far it has risen 1.75%. Further rise is indicated until a new top pivot has been found. 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. The Dr Reddy's Laboratories Ltd stock holds a buy signal from the short-term Moving Average; at the same time, however, the long-term average holds a general sell signal. Since the longterm average is above the short-term average there is a general sell signal in the stock giving a more negative forecast for the stock. On further gains, the stock will meet resistance from the long-term Moving Average at $73.70. On a fall, the stock will find some support from the short-term average at $71.38. A break-up through the long-term average will give another buy signal, while a fall below the short-term average will add another sell signal and strengthen the general signal.
Support, Risk & Stop-loss for Dr Reddy's Laboratories Ltd stock
Dr Reddy's Laboratories Ltd finds support from accumulated volume at $71.95 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 $0.760 between high and low, or 1.06%. For the last week the stock has had daily average volatility of 0.88%.
Our recommended stop-loss: $68.12 (-5.59%) (This stock has low daily movements and this gives low risk. There is a buy signal from a pivot bottom found 2 days ago.)
Trading Expectations (RDY) For The Upcoming Trading Day Of Tuesday 23rd
For the upcoming trading day on Tuesday, 23rd we expect Dr Reddy's Laboratories Ltd to open at $71.95, and during the day (based on 14 day Average True Range), to move between $71.19 and $73.11, which gives a possible trading interval of +/-$0.96 (+/-1.33%) up or down from last closing price. If Dr Reddy's Laboratories Ltd takes out the full calculated possible swing range there will be an estimated 2.65% move between the lowest and the highest trading price during the day.
Since the stock is closer to the support from accumulated volume at $71.95 (0.28%) than the resistance at $73.04 (1.23%), 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 Ltd stock A Buy?
Several short-term signals are positive and we conclude that the current level may hold a buying opportunity, as there is a fair chance for Dr Reddy's Laboratories Ltd stock to perform well in the short-term period. We have upgraded our analysis conclusion for this stock since the last evaluation from a Hold/Accumulate to a Buy candidate.
Current score: 1.365 Buy Candidate Upgraded
Predicted Opening Price for Dr Reddy's Laboratories Ltd of Tuesday, April 23, 2024
| Fair opening price April 23, 2024 | Current price |
|---|---|
| $71.95 ( 0.277%) | $72.15 |
The predicted opening price is based on yesterday's movements between high, low, and closing price.
Trading levels for RDY
Fibonacci Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 72.71 | 0.776 % | |
| R2 | 72.42 | 0.374 % | ||
| R1 | 72.24 | 0.125 % | ||
| Current price: | 72.15 | |||
| Support | S1 | 71.66 | -0.680 % | |
| S2 | 71.48 | -0.93 % | ||
| S3 | 71.19 | -1.33 % |
Accumulated Volume Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 74.76 | 3.62 % | |
| R2 | 73.20 | 1.46 % | ||
| R1 | 73.04 | 1.23 % | ||
| Current price | 72.15 | |||
| Support | S1 | 71.95 | -0.277% | |
| S2 | 71.42 | -1.01% | ||
| S3 | 70.34 | -2.51% |
RDY Dividend Payout History
| # | Ex-Date | Pay Date | Amount | Yield | |
|---|---|---|---|---|---|
| 1 | May 11, 2023 | Jul 28, 2023 | Aug 06, 2023 | $0.488 | 0.706% |
| 2 | May 11, 2023 | Jul 07, 2023 | Aug 07, 2023 | $0.488 | 0.706% |
| 3 | May 24, 2022 | Aug 01, 2022 | Aug 12, 2022 | $0.378 | 0.705% |
| 4 | May 24, 2022 | Jul 08, 2022 | Jul 11, 2022 | $0.387 | 0.688% |
| 5 | Jun 16, 2021 | Jul 08, 2021 | Aug 12, 2022 | $0.342 | 0.638% |
FAQ
Click here for our free guide on how to buy Dr Reddy's Laboratories Ltd Stock.
