ZFCVINDIA - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.2

📉 ZFCVINDIA is currently in a reversal phase with oversold technical indicators and weakening price action. Entry zone: ₹12,000–₹12,451; exit zone: ₹13,200–₹13,500. Watch for RSI crossing 35 and MACD flattening to confirm a potential bounce.

📊 Technical Overview

• Price Action: Trading at ₹12,451, below both 50-DMA (₹13,218) and 200-DMA (₹13,231), indicating short- and medium-term weakness.
• RSI (30.9): Near oversold territory, suggesting potential for technical rebound.
• MACD (-161): Deep bearish crossover, confirming strong downward momentum.
• Bollinger Bands: Price near lower band, indicating oversold conditions with possible support.
• Volume: Above 1-week average, showing increased participation despite price weakness.
• Support Zones: ₹12,000 (S1), ₹11,500 (S2)
• Resistance Zones: ₹13,200 (R1), ₹13,500 (R2)

✅ Positive

• Strong ROCE (20.2%) and ROE (15.1%) reflect solid operational efficiency.
• EPS of ₹253 and PEG ratio of 0.95 indicate strong earnings growth at reasonable valuation.
• Debt-free balance sheet (debt-to-equity: 0.00) ensures financial flexibility.
• Quarterly PAT of ₹120 Cr. shows consistent profitability.

⚠️ Limitation

• Stock P/E (49.2) is significantly higher than industry average (32.6), indicating premium valuation.
• Price trading below key moving averages confirms bearish bias.
• RSI and MACD show weak momentum, limiting short-term upside.
• DII holdings declined (-0.11%), reflecting cautious domestic sentiment.

📉 Company Negative News

• Price has corrected ~18.5% from its 52-week high of ₹15,290.

📈 Company Positive News

• Quarterly profit variation of +21.1% indicates healthy earnings growth.
• FII holdings increased (+0.06%), showing foreign investor interest.

🏢 Industry

• Capital goods and engineering sector benefits from infrastructure expansion and industrial modernization.
• Industry P/E of 32.6 reflects moderate valuation across peers.

🧭 Conclusion

• ZFCVINDIA is in a reversal phase with weak technical indicators but strong fundamentals.
• Entry zone: ₹12,000–₹12,451; exit zone: ₹13,200–₹13,500 for short-term bounce trades.
• Long-term investors may accumulate cautiously, supported by earnings strength and sector tailwinds.