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CA Omkar Bhutada - SEBI Reg IA

14th May · SEBI-Registered Analyst

This setup on Zydus looks technically strong and aligns with the type of breakout structures you've been sharing.

ZYDUSLIFE
Chart observations: Clear rounding accumulation / cup structure formed over several months. Price has now closed above the major resistance zone around ₹970–975. Breakout candle is wide-range and impulsive → suggests strong demand. Previous failed attempts around the same area increase the importance of this breakout. Right side of the base shows higher lows, indicating institutional accumulation. The move also appears to be coming after a consolidation phase rather than a vertical rally, which generally gives healthier continuation. Levels Entry zone: ₹980–995 (breakout retest or current zone) Stop loss: ₹945–950 (Below breakout area and recent swing) Targets: Target 1: ₹1,020–1,030 Target 2: ₹1,080 Stretch target: ₹1,140+ Structure quality score 8.8/10 Why not 10: Breakout candle is large; chasing after a gap/expansion sometimes leads to short-term pullback. Need follow-through for confirmation. For your style (AVWAP + structure + momentum), this resembles a classic Stage-2 continuation breakout after long accumulation.

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ZYDUSLIFE_2026-05-14_19-18-19.png
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