ZENSARTECH - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.6

📊 Chart & Trend Analysis:

ZENSARTECH is trading at ₹740, slightly below its 50 DMA (₹747) and 200 DMA (₹766), indicating mild weakness and consolidation. RSI at 48.3 suggests neutral momentum, neither overbought nor oversold. MACD at -3.71 shows bearish crossover, signaling short-term weakness. Bollinger Bands place the price near the mid-range, reflecting sideways movement. Current volume (4,77,960) is significantly higher than the 1-week average (2,53,861), showing strong participation and potential accumulation despite weak momentum.

🔎 Momentum Signals:

- Short-term momentum: Neutral-to-bearish.

- Support levels: ₹730, ₹700, ₹650.

- Resistance levels: ₹760 (DMA 200), ₹800, ₹850.

- Optimal entry zone: ₹720–740.

- Optimal exit zone: ₹780–820.

- Current phase: Consolidation with bearish undertone but strong volume support.

Positive

• Strong ROCE (24.6%) and ROE (20.2%) highlight efficient capital utilization.
• Dividend yield of 1.75% provides steady investor returns.
• EPS of ₹27.5 reflects consistent profitability.
• DII holding increased by 1.72%, showing strong domestic institutional support.
• PEG ratio of 1.19 suggests valuation is supported by growth prospects.

Limitation

• Stock trading below both 50 DMA and 200 DMA confirms short-term weakness.
• MACD negative crossover indicates bearish momentum.
• Quarterly PAT declined from ₹172 Cr. to ₹153 Cr.
• FII holding decreased by -1.26%, reflecting reduced foreign investor confidence.

Company Negative News

• Decline in quarterly PAT raises concerns about earnings momentum.
• FII outflows (-1.26%) show weakening foreign sentiment.

Company Positive News

• DII support increased (+1.72%), balancing sentiment.
• Quarterly profit variation (+31.5%) shows strong YoY improvement despite sequential decline.

Industry

• Industry P/E at 26.4 is aligned with ZENSARTECH’s (27.0), suggesting fair valuation relative to peers.
• IT services sector outlook remains stable with demand for digital transformation and cloud adoption.

Conclusion

⚠️ ZENSARTECH is consolidating near its moving averages with bearish undertone but strong volume support. Entry near ₹720–740 offers favorable risk-reward, while exits around ₹780–820 are optimal. Strong fundamentals, dividend yield, and domestic institutional support balance out weak momentum and foreign investor outflows. Short-term trend remains sideways-to-down, with potential rebound if buying interest sustains.