India, Feb. 11 -- The Bearish Engulfing pattern signals a momentum reversal, as sellers overpower buyers after strength, indicating rising selling pressure and supporting bearish potential.

A bearish engulfing pattern signals a potential reversal after recent strength. The strong bearish candle engulfing the prior bullish one reflects a shift in sentiment.

On Tuesday, Dr Reddy's Laboratories Ltd formed a bearish engulfing pattern on the 4-hour timeframe near the Rs 1,258 level. The strong red candle signalled increased selling pressure. A sustained move below Rs 1,258 could open the door for further downside, while a recovery above this level would weaken the bearish outlook.

The targets are typically set near the nearest support leve...