DRREDDY - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 19 Sept 25, 2:16 pm

Technical Rating: 4.4

Here’s a detailed technical analysis of DRREDDY (Dr. Reddy’s Laboratories Ltd.)

📊 Trend Overview

Current Trend: Trending upward

Price is above both 50 DMA (₹1,272) and 200 DMA (₹1,252), confirming a bullish structure.

RSI at 63.0 is in bullish territory, approaching overbought zone.

MACD at 15.5 shows a positive crossover, reinforcing upward momentum.

📈 Technical Indicators

Moving Averages

Price (₹1,322) > 50 DMA (₹1,272) > 200 DMA (₹1,252): Golden crossover confirmed

RSI (63.0)

Bullish zone. Momentum is strong but nearing overbought levels.

MACD (15.5)

Positive crossover. Momentum is accelerating.

Bollinger Bands

Price near upper band, suggesting strength but also short-term resistance.

Volume Trends

Current volume (9.22L) < 1-week average (10.84L): Moderate participation

Indicates steady accumulation without excessive volatility.

🔍 Short-Term Momentum Signals

Bullish Bias

MACD and price action support continued upside.

RSI suggests strength with room for further gains.

DII inflows (+1.10%) add to sentiment despite mild FII trimming.

📌 Support & Resistance Zones

Level Price (₹) Commentary

Support 1 1,272 50 DMA, short-term base

Support 2 1,220 Previous swing low

Resistance 1 1,350 Minor psychological barrier

Resistance 2 1,406 52-week high

Resistance 3 1,450 Projected breakout target

🎯 Entry & Exit Zones

Optimal Entry: ₹1,270–₹1,300 (on dips near support)

Exit Zone: ₹1,400–₹1,450 (partial profit booking)

Aggressive Target: ₹1,500+ if breakout above ₹1,406 sustains with volume

🧭 Summary

Trend: Bullish and trending upward

Momentum: Strong, supported by MACD, RSI, and moving averages

Outlook: Favorable for swing trades; breakout above ₹1,350 could trigger next rally

Valuation: Reasonable P/E (16.0) vs industry (33.4), strong ROE/ROCE, low debt, and robust profit growth (+109%) support continued technical strength

Let me know if you’d like a simulated trade setup or visual chart based on this analysis.

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