Dr Reddy's: 5 technical reasons why Choice Broking is bullish on this stock

Analysts at Choice Broking expects Dr Reddy's Laboratories stock to gain up to 15.5%, and test ₹1,465 levels on the upside in the medium-term given the favourable structure on the weekly chart.

Dr Reddy's Laboratories stock has rallied 10.5 per cent from its calendar year low of ₹1,148 hit on January 21. In the same period, the Nifty Pharma index has gained 3.3 per cent, and the NSE benchmark Nifty 50 has added 2.2 per cent.  The recovery in the stock price has been attributed to Q3 earnings, wherein the pharma major - reported 14 per cent dip in Q3FY26 consolidated net profit at ₹1,210 crore as against ₹1,413 crore in Q3FY25.  Dr Reddy's revenue from operations, however, grew by 4.4 per cent year-on-year to ₹8,727 crore from ₹8,357 crore in the same period.  Analysts were broadly constructive on Dr Reddy's Labs' medium-term prospects despite Q3FY26 margin pressure, with views split on near-term risks. READ MORE  Given the recent pullback, technical analysts at Choice Broking have turned bullish on Dr Reddy's stock, and expect it to rally towards ₹1,465 levels in the medium-term. 

Here are the 5 technical reasons why Choice Broking is bullish on Dr Reddy's Laboratories stock:

  Support at lower band on weekly chart: Dr Reddy's is exhibiting a strong bullish reversal on the weekly chart, rebounding sharply after taking support near the lower band of the channel, which is close to the 200-day EMA, and showing a strong rise from lower levels indicating solid buying interest and demand-based recovery, said Choice Broking in a report dated February 13, 2026. 

 

 

  Bullish candlestick pattern: A bullish engulfing candlestick formation near the key support zone further strengthens the possibility of a trend reversal, the report stated.  Trendline breakout: Choice Broking has highlighted that the stock has broken out of the falling trendline channel, signalling a clear shift in sentiment and a bullish structural reversal.  Based on this reversal, analysts at Choice Broking project an upside target of around ₹1,375 and ₹1,465 levels in the medium term. The higher-end of the project upside target implies a potential gain of around 15.5 per cent from Friday's (February 13) closing price.  Stock above key EMAs: Technically, the stock remains strong as it trades comfortably above its key EMAs, all trending upward and reinforcing the broader bullish momentum.  Steady volumes: The report also states that the price action is supported by steady volumes, reflecting healthy participation and gradual accumulation. The weekly RSI at 53.73 also supports the positive bias, indicating strengthening momentum without entering the overbought zone.  "Given the favourable chart structure and supportive technical indicators, long positions can be considered near ₹1,270, while dips towards ₹1,245 may act as accumulation opportunities. Positional support is placed at ₹1,165; a breach below this level could pose downside risk, but as long as the stock sustains above this zone, the broader bias remains positive with a favourable risk–reward setup for a potential breakout-driven rally," said Choice Broking.  Disclaimer: The views expressed by the brokerage/ analyst in this article are their own and not those of the website or its management. Business Standard advises users to check with certified experts before taking any investment decisions.