DRREDDY - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.8
| Stock Code | DRREDDY | Market Cap | 1,10,096 Cr. | Current Price | 1,320 ₹ | High / Low | 1,380 ₹ |
| Stock P/E | 34.2 | Book Value | 376 ₹ | Dividend Yield | 0.61 % | ROCE | 12.7 % |
| ROE | 10.7 % | Face Value | 1.00 ₹ | DMA 50 | 1,289 ₹ | DMA 200 | 1,265 ₹ |
| Chg in FII Hold | -1.20 % | Chg in DII Hold | 0.28 % | PAT Qtr | -219 Cr. | PAT Prev Qtr | 90.6 Cr. |
| RSI | 54.2 | MACD | 13.2 | Volume | 9,85,908 | Avg Vol 1Wk | 23,78,329 |
| Low price | 1,148 ₹ | High price | 1,380 ₹ | PEG Ratio | 4.89 | Debt to equity | 0.18 |
| 52w Index | 74.4 % | Qtr Profit Var | -118 % | EPS | 38.6 ₹ | Industry PE | 31.6 |
📈 Chart & Trend Analysis: DRREDDY is trading at ₹1,320, above its 50 DMA (₹1,289) and 200 DMA (₹1,265), showing mild bullish bias. RSI at 54.2 indicates neutral momentum. MACD at 13.2 reflects positive divergence, supporting short-term upside. Bollinger Bands place price mid-range, suggesting consolidation rather than breakout.
🔎 Momentum Signals: Current volume (9.85L) is significantly below the 1-week average (23.78L), showing weak participation. Short-term momentum favors mild upside, with resistance near ₹1,350–₹1,380.
🎯 Entry Zone: ₹1,300–₹1,310 (support near DMA cluster)
🚪 Exit Zone: ₹1,350–₹1,380 (resistance zone)
🛑 Stop-Loss: ₹1,280 (below support)
📊 Trend Status: Consolidating with mild bullish undertones; reversal risk if price fails to sustain above ₹1,350–₹1,380.
Positive
- Trading above both 50 DMA and 200 DMA confirms short-term bullish bias.
- Strong ROCE (12.7%) and ROE (10.7%) highlight efficiency.
- EPS of ₹38.6 provides valuation support.
- DII holdings increased (+0.28%), reflecting domestic institutional support.
- Debt-to-equity ratio at 0.18 ensures manageable leverage.
Limitation
- High P/E (34.2) compared to industry PE (31.6) signals premium valuation.
- Quarterly PAT dropped sharply (-₹219 Cr vs ₹90.6 Cr), showing earnings weakness.
- PEG ratio (4.89) suggests growth is already priced in.
- Volume significantly below average reduces conviction in breakout potential.
Company Negative News
- Quarterly profit variation (-118%) highlights severe earnings pressure.
- Decline in FII holdings (-1.20%) signals reduced foreign investor confidence.
Company Positive News
- DII inflows (+0.28%) show domestic support.
- Stock trading above DMA levels indicates short-term strength.
Industry
- Industry PE at 31.6 is slightly lower than DRREDDY’s 34.2, highlighting valuation premium.
- Pharmaceutical sector remains resilient, supported by global demand for generics and specialty formulations.
Conclusion
⚖️ DRREDDY is consolidating with mild bullish undertones, supported by DMA levels but constrained by weak earnings and reduced foreign inflows. Entry near ₹1,300–₹1,310 offers cautious accumulation, with exits around ₹1,350–₹1,380. Strict stop-loss management near ₹1,280 is essential given earnings volatility and low volume participation.
Would you like me to expand this into a pharma sector overlay comparing peers like Sun Pharma and Cipla, or keep it focused as a single DRREDDY swing trade report?