Zen Technologies shares rise 41% in seven days, overbought on charts; time to book profit?

Shares of Zen Technologies have surged 41% in the last seven sessions, powered by a rally in the defence counter, stellar Q4 earnings and hopes of more orders for its anti drone systems from Indian armed forces. The stock, which closed at Rs 1339.40 on May 8, 2025 reached Rs 1884.45 in the previous session on BSE. With the current rally, the relative strength index (RSI) of Zen Technologies stands at 76.2, signaling it has turned overbought on charts.

Zen Technologies stock ended 5% higher at Rs 1884.85 on Monday against the previous close of Rs 1794.75 on BSE. Market cap of the firm climbed to Rs 17,014 crore on BSE. The multibagger stock has gained 460.60% in two years and risen 4582% in five years.

Ameya Ranadive, Chartered Market Technician, CFTe, Sr Technical Analyst, StoxBox said, "Zen Technologies has shown a strong breakout in recent sessions, rallying over 5% to close at Rs 1,884.50. Backed by robust volumes and bullish technical indicators, the stock has surpassed key resistance zones near Rs 1,595 and Rs 1,558. The recent price action confirms a cup-and-handle breakout, supported by rising RSI and a strengthening ADX trend. With momentum firmly in favour of bulls, the stock appears poised to retest its previous highs."

"A sustained move above Rs 2,000 could open the gates for targets in the range of Rs 2,100–2,150 in the coming weeks. However, traders should watch for a close below Rs 1,760, which would negate the bullish structure and suggest caution. Until then, the bias remains positive, and dips could attract buying interest. This setup favors positional traders looking for medium-term upside," added Ranadive. 

In Q4, the firm reported a consolidated net profit of Rs 101 crore, rising 189% from Rs 34.94 crore in the previous year. Revenue from operations climbed 129.8% to Rs 324.97 crore compared to Rs 141.39 crore a year earlier.

Mandar Bhojane, Equity Research Analyst, Choice Broking said, "Zen Technologies has been on a strong bullish trajectory, currently trading near Rs 1884, after hitting consecutive upper circuits. The stock has rallied over 44.41% from its recent low, showcasing strong momentum and buying interest. If it manages to close above the key psychological level of Rs 1900, the rally is likely to extend towards Rs 2200 and Rs 2400 in the short term. On the downside, Rs 1790 and Rs 1700 will act as crucial support zones, cushioning any profit-booking or dip."

"From a technical standpoint, the stock has shown remarkable strength by delivering a bullish crossover of all major exponential moving averages (20, 50, 100, and 200 EMA), indicating a strong trend continuation. This alignment of key EMAs supports the current uptrend and suggests that any pullback could be considered as a buying opportunity. The price structure and volume action both support the ongoing strength in the counter," added Bhojane.

The stock fell to a 52 week low of Rs 893.80 on June 5, 2024 and touched a 52 week high of Rs 2627.95 on December 24, 2024.

Zen Technologies stock has a one-year beta of 1.1, indicating high volatility during the period. Zen Technologies shares are trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day and 200 day moving averages.

Zen Technologies Limited designs, develops, and manufactures defence training systems, based on sensors and simulators technology. The company’s category of products includes land-based military training simulators, driving simulators, live range equipment and anti-drone systems. The company also has a training platform in Hyderabad, with an integration of its complete product range. Its Anti-Drone System (ZADS) system works on drone detection, classification and tracking on passive surveillance, camera sensors and neutralization of threat by jamming drone communication.