DRREDDY - IntraDay Trade Analysis with Live Signals

Last Updated Time : 20 Dec 25, 07:02 am

IntraDay Trade Rating: 3.9

📊 Analysis: DRREDDY is trading at ₹1,280, slightly above both 50 DMA (₹1,257) and 200 DMA (₹1,252), showing medium-term support. RSI at 59.0 indicates neutral-to-strong momentum, while MACD (8.51) confirms bullish bias. Intraday volume (9.12 Lakh) is slightly below average (10.17 Lakh), suggesting moderate participation. The stock is closer to its 52-week high (₹1,406) than its low (₹1,020), reflecting strength but also resistance near upper levels.

• 💡 Optimal Buy Price: ₹1,270–₹1,285 range if support near 50 DMA holds.
• 📈 Profit-Taking Exit Levels: ₹1,300 (minor resistance), ₹1,330–₹1,360 (short-term resistance zone).
• ⚠️ Stop-Loss / Loss Protection: ₹1,260 (below intraday support).
• ⏱️ If Already Holding: Consider exiting near ₹1,300–₹1,360 if momentum stalls; cut positions if price breaks below ₹1,260 with rising volume.

Positive

• 📌 Strong ROCE (25.8%) and ROE (20.3%) — efficient capital use.
• 📌 EPS at ₹64.7 indicates robust earnings base.
• 📌 PEG ratio at 0.40 — attractive growth valuation.
• 📌 DII holding increased by 1.26% — domestic institutions showing confidence.
• 📌 Trading above both 50 DMA and 200 DMA — technical support intact.

Limitation

• ⚠️ Quarterly PAT dropped sharply from ₹2,961 Cr. to ₹387 Cr. (-79.4%).
• ⚠️ RSI near 60 — limited immediate upside momentum.
• ⚠️ Intraday volume slightly below average — moderate participation.
• ⚠️ FII holding decreased by -0.64% — foreign investor sentiment weakening.

Company Negative News

• ❌ Sharp decline in quarterly profits (-79.4%).
• ❌ FII stake reduction indicates cautious foreign sentiment.

Company Positive News

• ✅ Strong fundamentals with high ROCE and ROE.
• ✅ EPS and PEG ratio support valuation strength.
• ✅ DII confidence reflected in increased holdings.

Industry

• 🏦 Industry P/E at 30.6 — sector moderately valued.
• 🏦 DRREDDY trades at a discount (P/E 19.8), offering relative value compared to peers.

Conclusion

⚖️ DRREDDY is a good intraday candidate today with bullish MACD, strong fundamentals, and support above DMA levels. Traders may attempt entries near ₹1,270–₹1,285 with stop-loss at ₹1,260 and aim for exits between ₹1,300–₹1,360. While fundamentals remain strong, profit decline and moderate volume suggest cautious scalping rather than aggressive intraday trades.

Would you like me to extend this into a pharma sector peer benchmarking overlay so you can compare DRREDDY against Sun Pharma, Cipla, and Divis Labs for intraday rotation setups?