💊 DR. REDDY’S – Range Breakdown Alert After Exhaustion Rally!

After a sharp vertical upmove, DRREDDY has entered a sideways distribution phase with clear signs of weakness developing inside the range. Today’s breakdown hints at short-term downside risk. 📊 Technical Setup 📦 Box range: ₹1,300–1,375 ⚠️ Bearish flag-type structure after strong rally 🔻 Breakdown below ₹1,300 with volume would confirm distribution 📉 Potential fall toward ₹1,200–1,220 zone 📉 Multi-Signal Insights 🧲 Upmove looks overstretched – vertical rally with no base 🔴 MACD crossover to downside expected on next leg 🟩 AVWAP from breakout holding near ₹1,310 – likely to break 🔻 No follow-through buying after failed pullback = bear trap avoided 🧠 Fundamental Context 💊 Pharma sector facing margin compression in recent quarters 🌎 Global price pressure in generics market 📈 Despite strong historical RoCE and cash flows, recent EPS growth is tapering 📉 Short-Term Trade Plan Sell below ₹1,298 Target 1: ₹1,240 Target 2: ₹1,180 SL: ₹1,345 RR Ratio: 2.5+