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:

• Current Price: ₹966.65
  
• Immediate Support (SL): ₹902.55
  
• Key Resistance Zones: ₹1,008.35, ₹1,041.45, and ₹1,102.15
  

Technical Analysis:

1. Volume Profile: The visible range volume profile shows significant accumulation near ₹1,000, which could act as a strong magnet for the price.
   
2. Moving Averages: The stock has started reclaiming its short-term moving averages. A breakout above the 200-day MA would confirm bullish momentum.
   
3. RSI (Relative Strength Index): The RSI is trending upwards, indicating improving bullish momentum. Divergence suggests a potential reversal.
   
4. 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.