ZEEL - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:55 pm

Technical Rating: 2.9

📊 Chart & Trend Analysis:

ZEEL is trading at ₹90.6, below both its 50 DMA (₹101) and 200 DMA (₹114), confirming a bearish structure. RSI at 29.5 indicates oversold conditions, suggesting potential for a short-term rebound. MACD at -2.56 shows bearish crossover, reinforcing weakness. Bollinger Bands place the price near the lower band, signaling downside exhaustion. Current volume (95,70,424) is higher than the 1-week average (66,29,349), reflecting heightened selling activity rather than accumulation.

🔎 Momentum Signals:

- Short-term momentum: Bearish with oversold signals.

- Support levels: ₹89 (near-term), ₹85, ₹80.

- Resistance levels: ₹95, ₹101 (DMA 50), ₹114 (DMA 200).

- Optimal entry zone: ₹88–92 (only for high-risk traders).

- Optimal exit zone: ₹100–110.

- Current phase: Downtrend with possible short-term consolidation near support.

Positive

• Dividend yield of 2.65% provides investor returns.
• Book value of ₹111 indicates the stock is trading below intrinsic value.
• FII holding increased slightly (+0.62%), showing marginal foreign investor confidence.
• Debt-to-equity ratio of 0.03 highlights a strong balance sheet.

Limitation

• Stock trading below both 50 DMA and 200 DMA confirms bearish trend.
• Quarterly PAT dropped from ₹112 Cr. to ₹78.3 Cr. (-73.8% variation).
• PEG ratio of -0.89 indicates weak growth prospects.
• 52-week index at 2.10% shows severe underperformance compared to peers.

Company Negative News

• DII holding decreased sharply (-2.83%), reflecting reduced domestic institutional confidence.
• Quarterly earnings decline raises concerns about profitability and growth.

Company Positive News

• Dividend yield of 2.65% supports shareholder value.
• FII support increased marginally (+0.62%), balancing sentiment.

Industry

• Industry P/E at 19.8 is slightly higher than ZEEL’s (16.2), suggesting fair valuation relative to peers.
• Media and entertainment sector outlook remains competitive with digital transformation driving demand.

Conclusion

⚠️ ZEEL is in a downtrend, trading below key moving averages with bearish momentum. Entry near ₹88–92 is only suitable for aggressive traders seeking a rebound, while exits around ₹100–110 are safer. Strong dividend yield and low debt provide positives, but weak earnings and declining domestic investor sentiment weigh heavily. Short-term trend remains bearish with possible consolidation near support.