DRREDDY - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 3.7

📉 Current Price: ₹1,201

📊 RSI: 35.0 (Approaching oversold zone)

📉 MACD: -14.2 (Bearish momentum)

📉 DMA 50 / 200: ₹1,257 / ₹1,252 (Price below both averages)

📉 Volume: 10,59,850 vs 1Wk Avg 37,92,470 (Significantly below average)

💰 Market Cap: ₹1,00,183 Cr

📉 Qtr Profit Decline: ₹2,961 Cr → ₹387 Cr

📉 FII Holding: -0.64%

📈 DII Holding: +1.26%

📌 Optimal Entry Price

🎯 Entry Range: ₹1,180–₹1,200 (Near RSI support and recent low)

📤 Exit Strategy

💡 Exit if: Price approaches ₹1,280–₹1,300 or RSI crosses 65 with weakening volume.

✅ Positive

• Strong ROCE (25.8%) and ROE (20.3%) indicate efficient capital use
• Low P/E (18.6) compared to industry average (33.1)
• EPS of ₹64.7 and PEG ratio of 0.38 suggest reasonable valuation
• DII holding increased, signaling domestic institutional confidence
• Debt-to-equity ratio of 0.13 supports financial stability

⚠️ Limitation

• Price below both 50 DMA and 200 DMA
• MACD shows bearish momentum
• RSI near oversold but not yet reversing
• Volume significantly below average

📰 Company Negative News

• Quarterly PAT dropped sharply from ₹2,961 Cr to ₹387 Cr
• FII holding declined by 0.64%

📈 Company Positive News

• DII holding increased by 1.26%
• Valuation metrics suggest potential for recovery

🏭 Industry

• Industry P/E: 33.1 (higher than DRREDDY’s P/E)
• Pharmaceutical sector benefits from global demand and regulatory tailwinds

🔚 Conclusion

DRREDDY presents a tactical swing trade opportunity with strong fundamentals and oversold technicals. Entry near ₹1,180–₹1,200 is favorable, with an exit target around ₹1,280–₹1,300. A stop-loss below ₹1,160 is recommended to manage downside risk.

I can also track RSI and MACD trends for DRREDDY to help you catch the next momentum shift.