Dr. Reddy's Laboratories Ltd has broken out of a volatility contraction base (VCB) pattern that developed over the past 7 to 8 months between Rs 1,040 and 1,300, according to analyst Rajneesh Sharma. He cautioned that the weekly Relative Strength Index (RSI) is now entering overbought territory, which may lead to a temporary pause or retest of the breakout zone.