Long-term investors can buy Zydus Wellness (₹1,785.75) at current levels. The stock has consolidated above ₹1,500 and has formed a strong base.
This base formation has also happened just above a strong long-term trendline and the 100-Month moving average supports. That makes the recent rise in the share price very significant. On the charts, there is a clear sign of a bottom formation.
As such it marks the end of the downtrend that was in place since October 2021. Moving average cross overs on the short-term chart also strengthens the bullish case. That indicates that any dip from here can be shortlived and the downside will be limited.
So, the rise since April this year can very well be the beginning of a long-term upmove. It will have the potential to take Zydus Wellness share price up to ₹3,000-3,200 over the next couple of years.
Long-term investors, who can hold the stock for a minimum of two years, can buy Zydus Wellness now at ₹1,785. Accumulate on dips at ₹1,580. Keep the stop-loss at ₹1,260 initially. Move the stop-loss up to ₹1,860 when the price goes up to ₹2,100. Move the stop-loss further up to ₹2,300 when the price goes up to ₹2,600. Exit the stock at ₹3,000.