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DRREDDY - IntraDay Trade Analysis with Live Signals

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Rating: 3.5

Last Updated Time : 05 Feb 26, 04:32 am

IntraDay Trade Rating: 3.5

Stock Code DRREDDY Market Cap 1,03,290 Cr. Current Price 1,237 ₹ High / Low 1,380 ₹
Stock P/E 22.3 Book Value 378 ₹ Dividend Yield 0.65 % ROCE 25.8 %
ROE 20.3 % Face Value 1.00 ₹ DMA 50 1,231 ₹ DMA 200 1,245 ₹
Chg in FII Hold -2.35 % Chg in DII Hold 2.45 % PAT Qtr 90.6 Cr. PAT Prev Qtr 387 Cr.
RSI 54.9 MACD -6.14 Volume 9,60,495 Avg Vol 1Wk 12,92,011
Low price 1,020 ₹ High price 1,380 ₹ PEG Ratio 0.46 Debt to equity 0.13
52w Index 60.4 % Qtr Profit Var -89.3 % EPS 55.6 ₹ Industry PE 29.1

📊 Analysis: DRREDDY is trading at 1,237 ₹, close to its 50 DMA (1,231 ₹) and 200 DMA (1,245 ₹), showing near-term support but medium-term weakness. RSI at 54.9 indicates neutral momentum, while MACD (-6.14) suggests mild bearish undertone. Current volume (9.6L) is below the 1-week average (12.9L), pointing to reduced intraday participation. The setup favors cautious trades with moderate upside potential.

💰 Optimal Buy Price: 1,230–1,240 ₹ (near support zone)

📈 Profit-Taking Levels: 1,255–1,270 ₹ (short-term resistance)

⚠️ Stop-Loss: 1,220 ₹ (below support)

If Already Holding: Exit intraday if price fails to sustain above 1,230 ₹ or if RSI dips below 53 with weakening momentum. Book profits near 1,255–1,270 ₹ if momentum slows. Watch MACD widening negatively as a clear exit signal.

Positive

  • Strong ROCE (25.8%) and ROE (20.3%) indicate efficient capital use.
  • Debt-to-equity ratio of 0.13 shows low leverage.
  • DII holdings increased (+2.45%), reflecting domestic institutional support.
  • EPS of 55.6 ₹ supports valuation strength.
  • PEG ratio (0.46) indicates reasonable valuation relative to growth.

Limitation

  • Trading below 200 DMA, showing medium-term weakness.
  • MACD negative, indicating weak short-term momentum.
  • Quarterly PAT dropped sharply (90.6 Cr. vs 387 Cr.), down 89.3%.
  • FII holdings decreased (-2.35%), showing reduced foreign interest.
  • Volume below average, limiting intraday opportunities.

Company Negative News

  • No major external negative news reported, but sharp earnings decline and FII outflow are concerns.

Company Positive News

  • DII holdings increased significantly, reflecting confidence from domestic institutions.
  • Strong fundamentals with high ROCE and ROE despite recent earnings decline.

Industry

  • Industry P/E at 29.1 is higher than DRREDDY’s P/E (22.3), suggesting relative undervaluation.
  • Pharmaceutical sector remains resilient with global demand, though margins are pressured.

Conclusion

🔎 DRREDDY offers moderate intraday potential with support near 1,230 ₹ and resistance around 1,255–1,270 ₹. Momentum indicators suggest caution, as MACD is negative and volume is below average. Best strategy: Buy near support, exit near resistance, and protect downside with a strict stop-loss at 1,220 ₹.

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