ZYDUSLIFE - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 4.3
| Stock Code | ZYDUSLIFE | Market Cap | 1,04,568 Cr. | Current Price | 1,039 ₹ | High / Low | 1,094 ₹ |
| Stock P/E | 28.3 | Book Value | 235 ₹ | Dividend Yield | 0.10 % | ROCE | 16.6 % |
| ROE | 16.5 % | Face Value | 1.00 ₹ | DMA 50 | 942 ₹ | DMA 200 | 935 ₹ |
| Chg in FII Hold | -0.11 % | Chg in DII Hold | 0.12 % | PAT Qtr | 1,806 Cr. | PAT Prev Qtr | 343 Cr. |
| RSI | 69.4 | MACD | 31.5 | Volume | 13,30,092 | Avg Vol 1Wk | 50,57,077 |
| Low price | 836 ₹ | High price | 1,094 ₹ | PEG Ratio | 0.90 | Debt to equity | 0.31 |
| 52w Index | 78.7 % | Qtr Profit Var | -35.8 % | EPS | 35.4 ₹ | Industry PE | 30.5 |
📊 Chart Patterns & Trend: ZYDUSLIFE is trading well above both its 50 DMA (942 ₹) and 200 DMA (935 ₹), confirming strong bullish momentum. Price action shows an uptrend with consolidation near the 1,094 ₹ high. Trend bias remains positive.
📈 Moving Averages: Current price (1,039 ₹) is comfortably above both DMA levels, reinforcing bullish undertone. Sustained trading above 1,050 ₹ could confirm stronger upside.
⚖️ RSI: At 69.4, RSI is approaching overbought territory, suggesting caution as short-term pullbacks are possible.
📉 MACD: Strongly positive at 31.5, confirming bullish undertone and signaling continuation of upward momentum.
📊 Bollinger Bands: Price is near the upper band, indicating strong buying interest but also risk of correction.
📦 Volume Trends: Current volume (13,30,092) is significantly lower than 1-week average (50,57,077), showing reduced participation despite price strength.
🎯 Entry Zone: 1,000–1,030 ₹ (near DMA support).
🚪 Exit Zone: 1,080–1,100 ₹ (near resistance and 52-week high).
📌 Momentum Signal: Short-term bullish trend with consolidation near highs. A breakout above 1,094 ₹ could trigger fresh upside momentum, while failure to hold 1,000 ₹ may lead to downside.
Positive
- ✅ Strong ROCE (16.6%) and ROE (16.5%) reflect efficient capital use.
- ✅ EPS at 35.4 ₹ supports valuation strength.
- ✅ PEG ratio at 0.90 indicates attractive growth prospects.
- ✅ Stock has delivered strong 52-week performance (78.7%).
Limitation
- ⚠️ RSI near overbought levels (69.4) raises caution for short-term correction.
- ⚠️ Dividend yield at 0.10% is very low, limiting income appeal.
- ⚠️ Debt-to-equity at 0.31 is manageable but adds moderate financial risk.
Company Negative News
- 📉 PAT declined from 1,806 Cr. to 343 Cr. quarter-on-quarter.
- 📉 Quarterly profit variation (-35.8%) shows earnings pressure.
- 📉 FII holdings decreased by 0.11%, showing reduced foreign investor confidence.
Company Positive News
- 📈 DII holdings increased by 0.12%, reflecting domestic institutional support.
- 📈 Strong EPS and valuation metrics highlight resilience despite short-term earnings decline.
Industry
- 🏭 Industry PE at 30.5 indicates sector is moderately valued compared to ZYDUSLIFE’s P/E (28.3).
- 🏭 Pharma sector outlook remains strong, driven by global demand and innovation in healthcare solutions.
Conclusion
🔎 ZYDUSLIFE is in a bullish trend with consolidation near highs. Entry near 1,000–1,030 ₹ offers favorable risk-reward, while resistance at 1,080–1,100 ₹ should be watched for exits. A breakout above 1,094 ₹ could trigger fresh upside momentum. Investors should monitor RSI levels and volume strength for confirmation of sustained rally.