According to SEBI-registered research analyst Rahul Chhabadia (RA Number: INH000016047), Zydus Wellness has demonstrated a strong breakout on the weekly chart, supported by increased trading volumes. As reported by ET Now, the analyst noted that the stock's weekly candle formation was accompanied by higher volumes, indicating genuine strength in the upward movement. Additionally, Chhabadia highlighted a bullish harami candle formation on the weekly chart, which supports the positive technical setup for the stock.
According to Chhabadia's analysis, investors can consider an entry at ₹610 with a stop loss at ₹550. The analyst projects potential movement toward ₹650, ₹700 and ₹750 over the next 1-2 months. At the entry price of ₹610, the ₹750 target represents an upside of around 23%. The shares of Zydus Wellness closed at ₹507.55 on Wednesday, up 0.29% from the previous closing on NSE, as reported by ET Now.
Chhabadia highlighted Zydus Wellness' exposure to the FMCG sector as a key factor in his bullish outlook. According to the analyst, foreign institutional investors have been net sellers in the broader market, but sector-wise June data shows net buying by FIIs in the FMCG sector. As reported by ET Now, the analyst pointed to this FII buying in the FMCG segment as potential support for stocks in the sector, providing a favorable backdrop for Zydus Wellness performance.
The positive outlook for Zydus Wellness comes amid mixed market conditions, with the Sensex falling over 350 points and Nifty below 24,400 in recent trading sessions. According to ET Now, FMCG, IT, and realty stocks have struggled in the current market environment, making Zydus Wellness' technical breakout and sector-specific support particularly noteworthy. The company's technical strength contrasts with broader market weakness, suggesting potential outperformance opportunities for investors following the analyst's recommendations.
