DRREDDY - Swing Trade Analysis with AI Signals

Last Updated Time : 19 Sept 25, 2:15 pm

Swing Trade Rating: 4.3

📊 Technical & Momentum Overview

✅ Strengths

Price Action: Trading above both 50 DMA (₹1,272) and 200 DMA (₹1,252), confirming short- and medium-term strength.

MACD (15.5): Positive crossover, indicating bullish momentum.

RSI (63.0): Neutral-bullish zone, tradable with room before overbought.

EPS (₹82.6) vs P/E (16.0): Undervalued relative to industry PE (33.4)—strong earnings base.

PEG (0.33): Attractive growth-adjusted valuation.

ROCE (25.8%) & ROE (20.3%): Excellent capital efficiency.

Debt-to-Equity (0.12): Low leverage—adds margin of safety.

Qtr Profit Growth (+109%): Exceptional earnings momentum.

DII Inflow (+1.10%): Domestic institutional support.

⚠️ Watchouts

FII Outflow (–0.42%): Mild foreign investor caution.

Volume Dip: Current volume ~15% below 1-week average—momentum slightly softening.

52W Index (78.4%): Trading near upper range—momentum may be peaking.

Broker consensus for 2025 suggests targets between ₹1,480 and ₹1,650, supported by global expansion and biosimilar launches

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🎯 Optimal Entry Price

Buy Zone: ₹1,285–₹1,305 (near VWAP and breakout base)

Momentum Entry: ₹1,325–₹1,335 if RSI crosses 65 and MACD remains strong

🚪 Exit Strategy (If Already Holding)

Target Exit: ₹1,395–₹1,420 (near 52W high and resistance zone)

Stop Loss: ₹1,245 (below 200 DMA and recent support)

Exit Trigger: RSI > 70 or MACD flattens

Selva, DRREDDY is a fundamentally strong swing candidate with undervaluation, earnings momentum, and technical support. If you're building a pharma basket or want alert logic for MACD and RSI thresholds, I can help you script it.

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