The pharmaceutical sector has been abuzz with activity in recent days, and one stock that has caught the attention of market experts is Dr Reddy's Laboratories (DRL). Ruchit Jain, an analyst from 5paisa.com, highlighted DRL as his first pick during an interview with CNBC-TV18.

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Jain noted that DRL recently experienced a breakout above its previous swing high resistance level, which was around Rs 5,000-5,020. This breakout indicates a potential upward momentum for the stock, making it an attractive option for investors. With a stop loss set below Rs 4,950, Jain suggests a possible target of Rs 5,240 for those looking to go long on DRL.

Notably, the stock has already gained more than 11 percent over the past month, adding to its appeal.

Shifting gears to the large-cap IT sector, Ruchit Jain has identified HCLTech as a stock to watch over the next month, specifically from a July series perspective. According to Jain, HCLTech has been a clear outperformer in the last two to three weeks. The stock's 20-day exponential moving average (DEMA) has been acting as a reliable support level, further strengthening its positive outlook.

Additionally, HCLTech has witnessed previous swing highs breakout, indicating the potential for further gains. With a short-term perspective in mind, Jain recommends short-term traders to consider buying HCLTech with a stop loss below Rs 1,130. He envisions a possible target of around Rs 1,240 for this period.

It's worth noting that HCLTech shares have already witnessed an increase of more than 2 percent in the last month, further adding to the optimism surrounding the stock.

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