Top trading ideas by Anand Rathi Research: Buy Dr. Reddy, SBI

Nifty outlook and Top trading ideas by Jay Anand Thakkar ,CMT -Assistant Vice President - Equity Research, Anand Rathi Research:

NIFTY: BUY
TARGET 11,188
STOP LOSS: 10,933

The Index has provided a breakout from the consolidation i.e. from a symmetrical triangular pattern with a buy crossover in its momentum indicators MACD from the zero reference line. The Index is likely to form a new life highs in this rally, hence we recommend buying Nifty for the target of 11188 with a stop loss of 10933.

DR. REDDY: BUY
TARGET: Rs 2,420
STOP LOSS: Rs 2,323
Dr. Reddy has provided a breakout from the downtrend line resistance with a buy crossover in its
momentum indicator MACD on the daily charts. This indicates that the wave 5 up has resumed, hence the probability of an upside is quite high.

SBIN: BUY
TARGET: 275
STOP LOSS: 257
SBIN seems to have completed its retracement of the five wave and now it seems to be starting another five waves rising structure. The momentum has reversed from an oversold territory as well.

MCDOWELL: SELL
TARGET: 575
STOP LOSS: 613
MCDOWELL has broken the symmetrical triangular pattern on the lower side with a sell crossover in its momentum indicators which is a bearish sign in the short term. The stock also seems to have started another five waves on the lower side which indicates that the trend going ahead is bearish.

Dr Reddy's gains 4% as API Srikakulam plant gets USFDA clearance

Shares of Dr Reddy’s Laboratories were trading higher by nearly 4% at Rs 2,010 per share on the BSE in early morning trade after the company said the US health regulator has completed the audit of its API Srikakulam plant (SEZ) with no observations.
“The United States Food and Drug Administration (USFDA) audit of the company's API Srikakulam plant (SEZ) located in Andhra Pradesh has been completed with no observations,” Dr Reddy’s said in a regulatory filing.

Meanwhile, the Hyderabad-based drug major expects to launch over 15 products in the US market in 2018-19.

The company also remains optimistic for a double digit growth in the domestic market in the ongoing financial year; the PTI report suggested quoting top company official. CLICK HERE TO READ FULL REPORT

In past three months, Dr Reddy’s has underperformed the market by falling 10% as compared to 3.85% rise in the S&P BSE Sensex.

At 09:32 am; the stock was trading 3.3% higher against 0.145 gain in the benchmark index. A combined 304,023 equity shares changed hands on the counter on the BSE and NSE.