ZENTEC - Swing Trade Analysis with AI Signals

Last Updated Time : 19 Sept 25, 2:15 pm

Swing Trade Rating: 3.8

🧠 ZENTEC Swing Trade Analysis

ZENTEC (Zen Technologies Ltd.) presents a moderately strong swing trade setup. While the company boasts excellent fundamentals and strong volume, recent earnings contraction and bearish MACD suggest caution in timing the entry.

✅ Strengths

Fundamental Quality

ROCE: 32.9% / ROE: 24.6% — exceptional capital efficiency.

EPS: ₹25.0 — solid earnings base.

PEG Ratio: 0.16 — undervalued relative to growth.

Debt-to-Equity: 0.03 — virtually debt-free.

FII Holding Up: +0.09% — mild foreign interest.

Technical Setup

RSI: 61.9 — bullish zone, nearing overbought.

Price Above 50 DMA (₹1,569) — short-term trend support.

Volume Surge: Current volume is more than double the 1-week average, indicating strong participation.

⚠️ Risks

MACD: -5.01 — bearish crossover, signaling potential short-term weakness.

Price Below 200 DMA (₹1,631) — long-term trend resistance.

PAT Decline: ₹84.9 Cr. → ₹37.1 Cr. — down 50%, indicating earnings pressure.

DII Holding Down: -0.72% — domestic institutions trimming exposure.

High P/E (64.8) vs Industry PE (75.1) — expensive, though not extreme.

Dividend Yield: 0.12% — minimal income support.

52W Index: 40.2% — weak recovery from yearly lows.

🎯 Trade Strategy

Optimal Entry Price: ₹1,570–₹1,590

Enter near 50 DMA only if MACD flattens and RSI holds above 60.

Exit Plan (If Holding)

Target Exit: ₹1,675–₹1,700

Conservative target near 200 DMA and short-term resistance.

Stop Loss: ₹1,530

Below 50 DMA to manage downside risk.

ZENTEC is a fair swing candidate for traders who prioritize strong fundamentals and can wait for technical confirmation. If you'd like to compare it with other defense-tech or automation stocks, I can help you explore better momentum setups.

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