ZENTEC - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

Technical Rating: 3.3

📉 ZENTEC is currently in a reversal phase with bearish momentum and weak short-term signals. Entry zone: ₹1,300–₹1,356; exit zone: ₹1,460–₹1,520. Watch for RSI crossing 45 and MACD flattening to confirm a potential bounce.

📊 Technical Overview

• Price Action: Trading at ₹1,356, below both 50-DMA (₹1,460) and 200-DMA (₹1,580), indicating short- and medium-term weakness.
• RSI (40.6): Neutral to weak, suggesting lack of momentum and potential for further downside.
• MACD (-32.3): Bearish crossover, confirming downward pressure.
• Bollinger Bands: Price near lower band, indicating oversold conditions with possible support.
• Volume: Below 1-week average, showing weak participation and low conviction.
• Support Zones: ₹1,300 (S1), ₹1,200 (S2)
• Resistance Zones: ₹1,460 (R1), ₹1,520 (R2)

✅ Positive

• Strong ROCE (32.9%) and ROE (24.6%) reflect excellent capital efficiency.
• EPS of ₹22.9 and PEG ratio of 0.15 indicate strong earnings growth at reasonable valuation.
• Debt-free balance sheet (debt-to-equity: 0.00) ensures financial flexibility.
• Price has rebounded ~43% from its 52-week low of ₹945.

⚠️ Limitation

• Stock P/E (59.2) is below industry average (67.4), but still reflects premium pricing.
• Price trading below key moving averages confirms bearish bias.
• RSI and MACD show weak momentum, limiting short-term upside.
• Volume trends are weak, reducing breakout conviction.

📉 Company Negative News

• Quarterly PAT dropped from ₹37.1 Cr. to ₹46.2 Cr., a 29.2% decline.
• DII holdings declined (-0.82%), reflecting cautious domestic sentiment.

📈 Company Positive News

• FII holdings remained relatively stable (-0.10%), showing resilience in foreign investor interest.
• MACD and RSI nearing reversal zones, suggesting potential bottoming out.

🏢 Industry

• Technology and engineering sector benefits from digital transformation and automation demand.
• Industry P/E of 67.4 reflects high growth expectations across peers.

🧭 Conclusion

• ZENTEC is in a reversal phase with weak technical indicators but strong fundamentals.
• Entry zone: ₹1,300–₹1,356; exit zone: ₹1,460–₹1,520 for short-term bounce trades.
• Long-term investors may accumulate cautiously, supported by earnings strength and sector tailwinds.