Zydus Lifesciences (NSE:ZYDUSLIFE)
Overview: Zydus Lifesciences is currently at an interesting juncture, with signs of a potential reversal from recent lows. The price action suggests a possible recovery towards higher resistance levels, supported by technical indicators and market sentiment. Nomura's revised price target of ₹1,030, while maintaining a Neutral rating, aligns with this view.
Key Levels to Watch:
Technical Analysis:
Trading Strategy:
Targets:
Risk Management:
Final Thoughts: Zydus Lifesciences presents a favorable risk-reward scenario with clear technical signals for a rebound. However, macroeconomic factors and sector performance will play a critical role in sustaining the move. Traders should monitor price action near the resistance zones closely for signs of continuation or rejection.
Key Levels to Watch:
- Current Price: ₹966.65
- Immediate Support (SL): ₹902.55
- Key Resistance Zones: ₹1,008.35, ₹1,041.45, and ₹1,102.15
Technical Analysis:
- Volume Profile: The visible range volume profile shows significant accumulation near ₹1,000, which could act as a strong magnet for the price.
- Moving Averages: The stock has started reclaiming its short-term moving averages. A breakout above the 200-day MA would confirm bullish momentum.
- RSI (Relative Strength Index): The RSI is trending upwards, indicating improving bullish momentum. Divergence suggests a potential reversal.
- Price Action: The formation of higher lows near ₹949 reinforces the possibility of a short-term recovery.
Trading Strategy:
- Entry Zone: Between ₹950 and ₹970, as the stock shows stability near support levels.
- Stop-Loss: Strict stop-loss at ₹902.55 to limit downside risk.
Targets:
- Target 1: ₹1,008.35
- Target 2: ₹1,041.45
- Extended Target: ₹1,102.15
Risk Management:
- Position size will depend on risk tolerance, ensuring a Risk-Reward ratio of at least 1:2.
- Avoid chasing the price above ₹970 if momentum wanes.
Final Thoughts: Zydus Lifesciences presents a favorable risk-reward scenario with clear technical signals for a rebound. However, macroeconomic factors and sector performance will play a critical role in sustaining the move. Traders should monitor price action near the resistance zones closely for signs of continuation or rejection.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.