Derivatives Strategy - Alpha Trade - ICICI Securities

Recommendation

Long Dr Reddy's June Future at Rs. 4100-4120 and short Nifty June Future at Rs. 10025-10045
Current Price Ratio (Nifty/Dr Reddy's): 2.44
Target: 2.19
Stop loss: 2.58
Time Frame: Till June expiry

Rationale

The pharma space has exhibited a significant outperformance over the market in the last couple of months and witnessed buying support at every decline. Dr Reddy's is one such stock that has significantly outperformed markets. It is currently trading near its five year highs and is likely to make fresh life-time highs in the days to come.

The open interest in the stock has been gradually rising since April along with a fresh move in the stock. It is still significantly low compared to the open interest seen in the early part of the year. We believe fresh longs will take the stock higher from current levels.

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_AlphaTrade_DrReddy_Jun20.pdf

Shares of DR.REDDY's LABORATORIES LTD. was last trading in BSE at Rs.4118 as compared to the previous close of Rs. 4124.8. The total number of shares traded during the day was 50796 in over 4688 trades.

The stock hit an intraday high of Rs. 4189.35 and intraday low of 4089.15. The net turnover during the day was Rs. 210675124.

Source : Equity Bulls

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