Dr Reddy's Share price skyrockets near 13 pct; stock market experts suggest this strategy to mint money
Dr Reddy's share price has skyrocketed around 13 per cent in the intraday trade session. Dr Reddy's share price today shot up over Rs 625 to hit Rs 5,423 per share mark today.
Dr Reddy's share price has skyrocketed around 13 per cent in the intraday trade session. Dr Reddy's share price today shot up over Rs 625 to hit Rs 5,423 per share mark today. According to stock market experts, Dr Reddy's has announced the settlement of litigation with Celgene, relating to Revlimid capsules. Celgene has agreed to provide DRL with the license to sell the volume-limited amount of the capsule in the US starting March 2022. The company is also allowed to sell the capsule without volume limitation, starting January 31, 2026. Few days ago the pharma company had announced positive developments in Coronavirus vaccine developments as well. They said that this rise in Dr. Reddy's Laboratories share price is due to the combination of these positive developments taking place in the company. They said that now, the second quarter results of the Dr. Reddy's becomes important and a good commentary from the management may trigger upside swing in the stock by around 10 per cent.
Speaking on the Dr Reddy's share forecast, Avinash Gorakshkar, Head of Research at Profitmart Securities said, "This rise in the Dr Reddy's share price is due to the combination of positive news like approval to sale drugs in the US and settlement of litigation with Celgene, relating to Revlimid capsules. Dr. Reddy's is also going to start third state Coronavirus vaccine trials which has also gone down well among the market investors."
On his suggestion to the stock market investors, Gorakshkar said, "The counter has already appreciated around 7 per cent and around 3-4 per cent correction is expected once the profit-booking begins. So, one can buy the counter at that level as the second quarter results of the company holds key and after such developments, the company is expected to give some good numbers in October 2020."
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Sumeet Bagadia, Executive Director at Choice Broking said, "After consolidation in the Dr Reddy's share price, one can re-enter and take buy position maintaining stop loss below Rs 4,900 for around 10-15 per cent upside movement." Bagadia said that the share is overall bullish and recent positive developments are expected to fuel the rally in Dr. Reddy's stocks.
Gorakshkar said that if the Q2FY21 Results of Dr Reddy's come as per the expectations of the market, then the stock may further swing upside by near 10 per cent.
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