DRREDDY - Technical Analysis

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

Technical Rating: 3.8

Here’s an analytical breakdown of Dr. Reddy’s Laboratories Ltd. (DRREDDY) with chart-driven signals and tactical trade levels

📈 Trend Overview

Current Price: ₹1,300

Trading above 50 DMA (₹1,269) and 200 DMA (₹1,246) → confirms a mild uptrend

Price remains below 52W high of ₹1,421, indicating that momentum has not peaked

Trend Status: Trending upward, but with signs of hesitation

📊 Momentum Signals

RSI: 58.7 → Slight bullish bias, but still in neutral zone

MACD: -2.57 → Mild bearish crossover, suggesting momentum divergence

Volume: ~19.8L vs 20.8L avg → Stable, but not showing aggressive buying

The mix of indicators suggests that momentum is softening, with potential consolidation unless buying interest resumes.

📉 Moving Average Structure

DMA Level (₹) Technical Insight

50 DMA 1,269 Near-term support

200 DMA 1,246 Long-term bullish base

Current price holds above both averages, which adds structural support to the upward channel.

📎 Bollinger Band Setup

Price likely drifting near the upper-middle band, pointing to balanced volatility

Bands are not tightly squeezed, suggesting sideways drift more likely than a breakout

Watch RSI crossing 60+ for early breakout clues.

📍 Trade Planning Zones

Zone Type Price Range (₹) Strategy Notes

Entry Zone 1,260–1,275 Favorable re-entry near 50 DMA

Resistance 1,390–1,421 Key supply zone; near 52W highs

Exit Target 1,430–1,460 Target if breakout sustains with volume

Support Zone 1,220–1,245 Must-hold region for trend continuation

Stop-loss recommendation: ₹1,210

🧾 Institutional & Fundamentals Recap

DII Holding ↑ 1.10% → local confidence adding strength

FII Holding ↓ 0.42% → foreign sell-off caution

PEG Ratio: 0.50 → undervalued based on earnings growth

Debt/equity low at 0.14, strong ROE & ROCE → fundamentals remain robust

🧭 Conclusion

DRREDDY is on a gentle upward path, sustained by its position above key moving averages. However, MACD and volume hint at momentum fatigue, making ₹1,260–₹1,275 an appealing accumulation zone. A convincing rally would need stronger RSI and MACD confirmation to breach ₹1,400+.

Would you like a chart visualization to map these zones, or should we keep scanning for sector-wide signals?

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