DRREDDY - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Swing Trade Rating: 4.0

📊 Analysis Summary

DRREDDY is a fundamentally strong stock with attractive valuation metrics and solid return ratios. Technically, it’s in a mild uptrend but lacks strong momentum signals at the moment. The low PEG ratio and reasonable P/E make it a good candidate for swing trading, especially if entered near support levels. However, flat profit growth and a slightly negative MACD suggest waiting for confirmation before aggressive entry.

🔍 Technical Indicators

RSI (58.7): Slightly bullish — momentum building but not overheated.

MACD (-2.57): Mildly bearish — short-term weakness.

Price vs DMA

Current Price (₹1,300) is above 50 DMA (₹1,269) and 200 DMA (₹1,246) — bullish structure.

Volume: Slightly below weekly average — no strong accumulation yet.

📈 Fundamental Snapshot

P/E (19.2) vs Industry PE (34.0): Undervalued — attractive pricing.

PEG Ratio (0.50): Excellent — growth is reasonably priced.

ROE (18.0%) & ROCE (22.7%): Strong — efficient capital deployment.

EPS (₹68.1) vs Price (₹1,300): Solid earnings base.

Qtr Profit Growth (+1.26%): Flat — not a growth trigger.

FII Holding ↓ (-0.42%), DII Holding ↑ (+1.10%)**: Mild institutional support.

Debt to Equity (0.14): Low — minimal financial risk.

Dividend Yield (0.62%): Decent — adds minor value.

✅ Entry Strategy (If Not Holding)

Optimal Entry Price: ₹1,270–₹1,285 range, near 50 DMA.

Wait for MACD crossover to positive and RSI above 60 for confirmation.

Avoid chasing above ₹1,310 unless volume surges.

🚪 Exit Strategy (If Already Holding)

Exit near ₹1,400–₹1,420, close to recent high and resistance zone.

If price drops below ₹1,250, consider stop-loss at ₹1,230 to protect downside.

⚖️ Final Verdict

DRREDDY is a value-rich swing trade with strong fundamentals and a stable technical setup. While not explosive, it offers a low-risk, steady upside if entered near support and exited near resistance. Ideal for traders seeking a balanced swing opportunity with limited downside.

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