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ZEEL - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.7

Last Updated Time : 24 May 26, 10:34 pm

Technical Rating: 3.7

Stock Code ZEEL Market Cap 7,879 Cr. Current Price 82.2 ₹ High / Low 152 ₹
Stock P/E 61.2 Book Value 110 ₹ Dividend Yield 2.96 % ROCE 1.28 %
ROE 1.21 % Face Value 1.00 ₹ DMA 50 85.8 ₹ DMA 200 95.7 ₹
Chg in FII Hold 1.12 % Chg in DII Hold -1.19 % PAT Qtr -181 Cr. PAT Prev Qtr 118 Cr.
RSI 42.9 MACD -0.14 Volume 78,55,630 Avg Vol 1Wk 1,62,21,544
Low price 68.0 ₹ High price 152 ₹ PEG Ratio -2.05 Debt to equity 0.02
52w Index 16.9 % Qtr Profit Var -216 % EPS 1.25 ₹ Industry PE 25.4

📊 Chart Patterns & Trend: ZEEL is trading below both its 50 DMA (85.8 ₹) and 200 DMA (95.7 ₹), showing weakness. Price action suggests consolidation with bearish bias between 80–86 ₹ resistance and 68 ₹ support. Trend is leaning towards reversal from highs.

📈 Moving Averages: Current price (82.2 ₹) is under both DMA levels, signaling short-term pressure. Sustained trading below 86 ₹ keeps bearish outlook intact.

⚖️ RSI: At 42.9, RSI is neutral-to-weak, indicating limited momentum and potential for rebound if buying emerges.

📉 MACD: Slightly negative at -0.14, confirming bearish undertone and weak momentum.

📊 Bollinger Bands: Price is near the lower band, suggesting oversold conditions and possible bounce from 80 ₹ support zone.

📦 Volume Trends: Current volume (78,55,630) is significantly lower than 1-week average (1,62,21,544), showing reduced participation and weak conviction in price moves.

🎯 Entry Zone: 78–82 ₹ (near support).

🚪 Exit Zone: 90–95 ₹ (near resistance and 200 DMA).

📌 Momentum Signal: Short-term consolidation with bearish bias. A rebound is possible if RSI-driven buying emerges, but trend remains weak unless price breaks above 95 ₹.


Positive

  • ✅ Dividend yield at 2.96% provides decent income appeal.
  • ✅ EPS at 1.25 ₹ supports valuation recovery potential.
  • ✅ FII holdings increased by 1.12%, reflecting foreign investor confidence.

Limitation

  • ⚠️ High P/E (61.2) compared to industry PE (25.4) suggests steep overvaluation.
  • ⚠️ ROCE (1.28%) and ROE (1.21%) are very weak, showing poor efficiency.
  • ⚠️ PEG ratio (-2.05) highlights negative growth alignment.

Company Negative News

  • 📉 PAT turned negative at -181 Cr. compared to 118 Cr. in the previous quarter.
  • 📉 Quarterly profit variation (-216%) shows severe earnings pressure.
  • 📉 DII holdings decreased by 1.19%, showing reduced domestic institutional support.

Company Positive News

  • 📈 FII holdings increased by 1.12%, reflecting foreign investor confidence.
  • 📈 Stock has delivered modest 52-week performance (16.9%).

Industry

  • 🏭 Industry PE at 25.4 indicates sector is moderately valued compared to ZEEL’s premium valuation.
  • 🏭 Media and entertainment sector outlook remains competitive, with profitability under pressure due to rising costs and digital disruption.

Conclusion

🔎 ZEEL is in a consolidation phase with bearish bias. Entry near 78–82 ₹ offers limited downside risk, while resistance at 90–95 ₹ should be watched for exits. RSI near neutral levels hints at possible rebound, but sustained weakness below DMA levels keeps trend fragile. Investors should wait for confirmation above 95 ₹ before expecting a trend reversal.

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