DRREDDY - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 4.0
| Stock Code | DRREDDY | Market Cap | 1,10,417 Cr. | Current Price | 1,323 ₹ | High / Low | 1,380 ₹ |
| Stock P/E | 23.8 | Book Value | 378 ₹ | Dividend Yield | 0.60 % | ROCE | 25.8 % |
| ROE | 20.3 % | Face Value | 1.00 ₹ | DMA 50 | 1,267 ₹ | DMA 200 | 1,257 ₹ |
| Chg in FII Hold | -1.20 % | Chg in DII Hold | 0.28 % | PAT Qtr | 90.6 Cr. | PAT Prev Qtr | 387 Cr. |
| RSI | 59.5 | MACD | 18.8 | Volume | 12,89,421 | Avg Vol 1Wk | 26,07,976 |
| Low price | 1,121 ₹ | High price | 1,380 ₹ | PEG Ratio | 0.49 | Debt to equity | 0.13 |
| 52w Index | 78.0 % | Qtr Profit Var | -89.3 % | EPS | 55.6 ₹ | Industry PE | 30.1 |
📊 DRREDDY is trading above both its 50 DMA (1,267 ₹) and 200 DMA (1,257 ₹), confirming short-term bullish strength. RSI at 59.5 indicates healthy momentum, while MACD at 18.8 shows strong positive divergence. Current volume (12,89,421) is significantly below average (26,07,976), suggesting weak participation despite price strength. Bollinger Bands show price near the upper band, pointing to resistance around 1,360–1,380 ₹.
🎯 Entry Zone: 1,310 ₹ – 1,325 ₹ (support near DMA levels)
💰 Exit Zone: 1,360 ₹ – 1,380 ₹ (resistance band)
🔄 Trend Status: Trending upward with strong momentum; possible consolidation if volume remains weak.
Positive
- Strong ROE (20.3%) and ROCE (25.8%) highlight efficient capital use.
- PEG ratio (0.49) suggests attractive growth-adjusted valuation.
- EPS of 55.6 ₹ supports earnings strength.
- Trading above both 50 DMA and 200 DMA confirms bullish bias.
- DII holdings increased (+0.28%), reflecting domestic institutional support.
Limitation
- Quarterly PAT decline (387 Cr → 90.6 Cr) highlights earnings weakness.
- Volume significantly below average reduces conviction in momentum.
- RSI nearing overbought zone increases risk of short-term pullback.
- FII holdings declined (-1.20%), signaling reduced foreign investor confidence.
Company Negative News
- Sharp quarterly profit decline (-89.3%) raises concerns about earnings sustainability.
- Reduced FII participation highlights cautious foreign sentiment.
Company Positive News
- DII inflows (+0.28%) show domestic institutional confidence.
- Strong fundamentals with high ROE and ROCE support long-term stability.
Industry
- Industry PE at 30.1 is higher than DRREDDY’s 23.8, suggesting relative undervaluation.
- Pharmaceutical sector remains resilient with long-term demand but faces margin pressures.
Conclusion
⚖️ DRREDDY is trending upward with strong technical signals but faces earnings pressure and weak volume participation. Entry near 1,310–1,325 ₹ with exits around 1,360–1,380 ₹ is favorable for swing trades. Long-term investors may hold due to strong fundamentals and attractive valuation, but caution is warranted given recent profit decline and reduced FII interest.
This is the short-term technical trade view. I can also prepare a sector overlay benchmarking DRREDDY against pharma peers to refine entry/exit strategies for your workflow reports.