ZYDUSLIFE - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 4.4

🧪 ZYDUSLIFE Swing Trade Analysis

Zydus Lifesciences Ltd. presents a strong swing trade setup, backed by excellent fundamentals, bullish technical indicators, and healthy volume. While the recent profit contraction raises a flag, the overall structure favors a short-term upward move.

✅ Strengths

Fundamental Quality

ROCE: 30.6% / ROE: 31.2% — outstanding capital efficiency.

EPS: ₹44.3 — strong earnings base.

PEG Ratio: 0.32 — undervalued relative to growth.

Debt-to-Equity: 0.39 — moderate and manageable.

Dividend Yield: 1.05% — modest income support.

Technical Momentum

MACD: 17.1 — strong bullish crossover.

RSI: 67.0 — bullish zone, nearing overbought.

Price Above DMA 50 & 200: Current price ₹1,048 is above DMA 50 (₹994) and DMA 200 (₹964), confirming trend strength.

Volume Surge: Current volume is ~52% higher than 1-week average, indicating strong participation.

⚠️ Risks

Quarterly Profit Drop: ₹2,814 Cr. → ₹385 Cr. — down 77.4%, likely due to one-off gains in the previous quarter.

FII Sentiment Slightly Negative: Foreign institutions reduced holdings by 0.18%.

52W Index: 83.0% — near yearly high, limiting short-term upside.

🎯 Trade Strategy

Optimal Entry Price: ₹1,020–₹1,030

Enter on a minor pullback near 50 DMA for a lower-risk setup.

Exit Plan (If Holding)

Target Exit: ₹1,090–₹1,100

Conservative target near recent high.

Stop Loss: ₹990

Below 50 DMA to manage downside risk.

ZYDUSLIFE is a strong swing candidate for traders seeking momentum in pharma with solid fundamentals. Let me know if you'd like to compare it with peers like Cipla or Dr. Reddy’s.

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