ZYDUSLIFE - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:55 pm

Technical Rating: 3.7

📊 Chart & Trend Analysis:

ZYDUSLIFE is trading at ₹920, below both its 50 DMA (₹947) and 200 DMA (₹961), indicating short-term weakness. RSI at 40.8 suggests mildly oversold conditions, hinting at potential stabilization. MACD at -9.67 shows bearish crossover, signaling downward momentum. Bollinger Bands place the price near the lower band, reflecting consolidation with downside bias. Current volume (8,28,140) is above the 1-week average (5,83,593), showing increased participation despite weakness.

🔎 Momentum Signals:

- Short-term momentum: Bearish-to-neutral.

- Support levels: ₹910, ₹880, ₹795 (major support).

- Resistance levels: ₹940, ₹961 (DMA 200), ₹1,000.

- Optimal entry zone: ₹900–930.

- Optimal exit zone: ₹960–1,000.

- Current phase: Consolidation with bearish undertone but potential rebound from oversold levels.

Positive

• Strong ROCE (30.6%) and ROE (31.2%) highlight excellent capital efficiency.
• EPS of ₹48.0 reflects robust profitability.
• PEG ratio of 0.26 suggests attractive valuation relative to growth.
• Dividend yield of 1.20% provides investor returns.
• FII holding increased by 0.21%, showing foreign investor confidence.

Limitation

• Stock trading below both 50 DMA and 200 DMA confirms short-term weakness.
• MACD negative crossover indicates bearish momentum.
• Debt-to-equity ratio of 0.35 is moderate, adding some financial risk.
• 52-week index at 47.3% shows underperformance compared to sector leaders.

Company Negative News

• DII holding decreased by -0.23%, reflecting reduced domestic institutional confidence.
• Stock price trending below key moving averages highlights technical weakness.

Company Positive News

• Quarterly PAT surged from ₹385 Cr. to ₹1,157 Cr., showing strong earnings growth.
• FII support increased (+0.21%), balancing sentiment.

Industry

• Industry P/E at 30.6 is higher than ZYDUSLIFE’s (19.2), suggesting the stock trades at a discount to peers.
• Pharma sector outlook remains strong with long-term demand drivers and defensive characteristics.

Conclusion

⚡ ZYDUSLIFE is consolidating with bearish undertone, trading below key moving averages but supported by strong fundamentals. Entry near ₹900–930 offers favorable risk-reward, while exits around ₹960–1,000 are optimal. Strong profitability, low PEG ratio, and foreign investor support balance out technical weakness and modest debt levels. Short-term trend remains sideways-to-down, with potential rebound if momentum improves.