ZYDUSLIFE - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.5

📉 ZYDUSLIFE is currently in a reversal phase with weak short-term momentum but strong long-term fundamentals. Entry zone: ₹950–₹974; exit zone: ₹1,010–₹1,050. Watch for RSI crossing 45 and MACD flattening to confirm a potential bounce.

📊 Technical Overview

• Price Action: Trading at ₹974, below 50-DMA (₹996) but slightly above 200-DMA (₹972), indicating short-term weakness and long-term support.
• RSI (39.8): Near oversold zone, suggesting potential for technical rebound.
• MACD (-2.94): Bearish crossover, confirming downward pressure.
• Bollinger Bands: Price near lower band, indicating oversold conditions with possible support.
• Volume: Below 1-week average, showing reduced participation and weak conviction.
• Support Zones: ₹950 (S1), ₹930 (S2)
• Resistance Zones: ₹1,010 (R1), ₹1,050 (R2)

✅ Positive

• Strong ROCE (30.6%) and ROE (31.2%) reflect excellent capital efficiency.
• EPS of ₹44.3 and PEG ratio of 0.30 indicate strong earnings growth at reasonable valuation.
• Price trading near 200-DMA suggests long-term support zone.
• FII holdings increased (+0.21%), showing foreign investor confidence.

⚠️ Limitation

• Stock P/E (22.0) is below industry average (33.1), indicating cautious valuation.
• MACD and RSI show weak momentum, limiting short-term upside.
• Volume trends are weak, reducing breakout conviction.
• DII holdings declined (-0.23%), reflecting cautious domestic sentiment.

📉 Company Negative News

• Quarterly PAT dropped from ₹2,814 Cr. to ₹385 Cr., a 77.4% decline.

📈 Company Positive News

• Strong fundamentals and low PEG ratio suggest long-term growth potential.
• MACD and RSI nearing reversal zones, indicating possible bottoming out.

🏢 Industry

• Pharmaceutical sector benefits from global healthcare demand and innovation in specialty drugs.
• Industry P/E of 33.1 reflects moderate valuation across peers.

🧭 Conclusion

• ZYDUSLIFE is in a reversal phase with weak technical indicators but strong fundamentals.
• Entry zone: ₹950–₹974; exit zone: ₹1,010–₹1,050 for short-term bounce trades.
• Long-term investors may accumulate cautiously, supported by earnings strength and sector tailwinds.