ZYDUSLIFE - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.5
| Stock Code | ZYDUSLIFE | Market Cap | 88,367 Cr. | Current Price | 878 ₹ | High / Low | 1,059 ₹ |
| Stock P/E | 18.3 | Book Value | 215 ₹ | Dividend Yield | 1.25 % | ROCE | 30.6 % |
| ROE | 31.2 % | Face Value | 1.00 ₹ | DMA 50 | 913 ₹ | DMA 200 | 946 ₹ |
| Chg in FII Hold | -0.28 % | Chg in DII Hold | 0.22 % | PAT Qtr | 1,157 Cr. | PAT Prev Qtr | 385 Cr. |
| RSI | 39.6 | MACD | -9.15 | Volume | 1,81,749 | Avg Vol 1Wk | 4,27,486 |
| Low price | 795 ₹ | High price | 1,059 ₹ | PEG Ratio | 0.25 | Debt to equity | 0.35 |
| 52w Index | 31.5 % | Qtr Profit Var | 46.4 % | EPS | 48.0 ₹ | Industry PE | 29.0 |
📊 Chart Patterns & Trend: ZYDUSLIFE is trading below both its 50 DMA (913 ₹) and 200 DMA (946 ₹), indicating short-term weakness. Price action suggests consolidation between 860–920 ₹, with strong support at 860–870 ₹ and resistance near 920–950 ₹. Trendlines show sideways movement with bearish undertone.
📈 Moving Averages: Current price (878 ₹) is below both 50 DMA and 200 DMA, signaling weakness. A sustained move above 920–950 ₹ is required for reversal confirmation.
📉 RSI: At 39.6, RSI is near oversold territory, suggesting limited downside but weak momentum.
📉 MACD: Negative at -9.15, confirming bearish momentum in the short term.
📊 Bollinger Bands: Price is near the lower band, indicating oversold conditions and potential support around 860–870 ₹.
📊 Volume Trends: Current volume (1,81,749) is significantly below the 1-week average (4,27,486), showing weak participation and lack of strong buying interest.
🎯 Entry Zone: 860–880 ₹ (near support, risk-managed entry).
🎯 Exit Zone: 920–950 ₹ (resistance zone, profit booking advisable).
📌 Momentum Signal: Weak short-term momentum, consolidation phase with bearish undertone. A breakout above 950 ₹ is needed to confirm reversal toward 1,000–1,050 ₹.
Positive
- Strong ROCE (30.6%) and ROE (31.2%) highlight efficient capital use.
- Quarterly PAT growth from 385 Cr. to 1,157 Cr. (+46.4%) shows strong earnings momentum.
- PEG ratio of 0.25 indicates attractive growth valuation.
- DII holdings increased (+0.22%), reflecting domestic investor confidence.
- EPS of 48.0 ₹ reflects solid earnings base.
Limitation
- Stock trading below both 50 DMA and 200 DMA shows technical weakness.
- High debt-to-equity ratio (0.35) compared to peers.
- Weak trading volumes reduce momentum strength.
Company Negative News
- Decline in FII holdings (-0.28%) shows reduced foreign investor confidence.
Company Positive News
- Quarterly PAT growth highlights strong operational improvement.
- DII support increased, showing domestic institutional interest.
Industry
- Industry P/E at 29.0 indicates sector is moderately valued compared to ZYDUSLIFE’s lower valuation (18.3).
- 52-week index return of 31.5% shows healthy sector performance.
Conclusion
⚖️ ZYDUSLIFE is consolidating near support with weak momentum and bearish undertones. Entry near 860–880 ₹ offers limited risk, while exits should be considered around 920–950 ₹ unless strong reversal occurs. Fundamentally strong with attractive growth valuation, but technically cautious in the near term.