ZENSARTECH - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.8
| Stock Code | ZENSARTECH | Market Cap | 11,127 Cr. | Current Price | 489 ₹ | High / Low | 895 ₹ |
| Stock P/E | 15.8 | Book Value | 155 ₹ | Dividend Yield | 2.66 % | ROCE | 26.5 % |
| ROE | 21.3 % | Face Value | 2.00 ₹ | DMA 50 | 541 ₹ | DMA 200 | 645 ₹ |
| Chg in FII Hold | -1.29 % | Chg in DII Hold | 0.54 % | PAT Qtr | 199 Cr. | PAT Prev Qtr | 181 Cr. |
| RSI | 35.4 | MACD | -17.4 | Volume | 2,00,941 | Avg Vol 1Wk | 3,51,618 |
| Low price | 470 ₹ | High price | 895 ₹ | PEG Ratio | 0.47 | Debt to equity | 0.01 |
| 52w Index | 4.39 % | Qtr Profit Var | 35.6 % | EPS | 30.2 ₹ | Industry PE | 20.7 |
📊 Chart Patterns & Trend: ZENSARTECH is trading below both its 50 DMA (541 ₹) and 200 DMA (645 ₹), showing weakness. Price action suggests consolidation with bearish bias between 470–500 ₹ support and 540–560 ₹ resistance. Trend is leaning towards reversal from highs.
📈 Moving Averages: Current price (489 ₹) is under both DMA levels, signaling short-term pressure. Sustained trading above 540 ₹ could confirm bullish reversal.
⚖️ RSI: At 35.4, RSI is near oversold territory, indicating potential for rebound if buying emerges.
📉 MACD: Negative at -17.4, confirming bearish undertone and weak momentum.
📊 Bollinger Bands: Price is near the lower band, suggesting oversold conditions and possible bounce from 470–490 ₹ support zone.
📦 Volume Trends: Current volume (2,00,941) is lower than 1-week average (3,51,618), showing reduced participation and weak conviction in price moves.
🎯 Entry Zone: 470–490 ₹ (near support).
🚪 Exit Zone: 540–560 ₹ (near resistance and 50 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 540–560 ₹.
Positive
- ✅ Strong ROCE (26.5%) and ROE (21.3%) reflect efficient capital use.
- ✅ EPS at 30.2 ₹ supports valuation strength.
- ✅ Dividend yield at 2.66% provides attractive income appeal.
- ✅ Debt-to-equity at 0.01 indicates very low leverage.
Limitation
- ⚠️ Current price below DMA levels indicates weak momentum.
- ⚠️ High P/E (15.8) compared to industry PE (20.7) is modest but valuation pressure exists.
- ⚠️ RSI near oversold levels highlights weak buying interest.
Company Negative News
- 📉 PAT declined from 47.8 Cr. to 14.8 Cr. quarter-on-quarter.
- 📉 Quarterly profit variation (-82.6%) shows earnings pressure.
- 📉 FII holdings decreased by 1.29%, showing reduced foreign investor confidence.
Company Positive News
- 📈 DII holdings increased by 0.54%, reflecting domestic institutional support.
- 📈 Quarterly PAT improved year-on-year with 35.6% variation despite short-term decline.
Industry
- 🏭 Industry PE at 20.7 indicates sector is moderately valued compared to ZENSARTECH’s lower P/E (15.8).
- 🏭 IT services sector outlook remains steady, supported by digital transformation and global demand.
Conclusion
🔎 ZENSARTECH is in a consolidation phase with bearish bias. Entry near 470–490 ₹ offers limited downside risk, while resistance at 540–560 ₹ should be watched for exits. RSI near oversold levels hints at possible rebound, but sustained weakness below DMA levels keeps trend fragile. Investors should wait for confirmation above 560 ₹ before expecting a trend reversal.