BDL - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:54 pm

Technical Rating: 3.5

📊 Chart Patterns & Trend: BDL is in a corrective phase after a steep fall from its 52-week high of 2,097 ₹. The current price (1,372 ₹) is below both 50 DMA (1,485 ₹) and 200 DMA (1,500 ₹), reflecting bearish sentiment. The stock is consolidating near support levels with weak momentum indicators.

📈 Moving Averages:

- Price below both 50 DMA and 200 DMA confirms bearish undertone.

- Sustained weakness suggests resistance near 1,485–1,500 ₹.

- A breakout above 1,500 ₹ is needed to regain strength.

📉 RSI: At 33.4, RSI is weak and close to oversold territory, suggesting limited buying strength but potential for a short-term bounce.

📉 MACD: Strongly negative (-44.2), confirming bearish crossover and downward momentum.

📊 Bollinger Bands: Price is near the lower band, indicating oversold conditions and possible short-term support.

📊 Volume Trends: Current volume (11,58,229) is slightly below the 1-week average (11,78,144), showing reduced participation and lack of strong buying interest.

🎯 Entry Zone: 1,350–1,370 ₹ (near support).

🎯 Exit Zone: 1,480–1,500 ₹ (near resistance trendline and DMA levels).

⚡ Support Levels: 1,350 ₹ and 1,200 ₹.

⚡ Resistance Levels: 1,485 ₹ and 1,500 ₹.

Positive

• Strong ROCE (19.7%) and ROE (14.4%) highlight efficient capital use.
• Debt-free balance sheet ensures financial stability.
• Quarterly PAT growth (216 Cr. vs 18.4 Cr.) shows strong earnings momentum.
• DII holdings increased (+1.20%), reflecting domestic investor confidence.

Limitation

• High P/E (76.9) compared to industry average (57.9), suggesting premium valuation.
• PEG ratio (46.6) indicates expensive valuation relative to growth.
• RSI weak at 33.4, showing limited buying strength.
• MACD strongly negative, confirming short-term weakness.

Company Negative News

• FII holdings decreased (-1.34%), showing reduced foreign investor interest.
• Stock corrected sharply from its 52-week high of 2,097 ₹.
• MACD bearish crossover signals short-term weakness.

Company Positive News

• Quarterly PAT growth of 76.2% reflects strong profitability recovery.
• EPS of 17.8 ₹ supports earnings visibility.
• DII inflows (+1.20%) reflect confidence in fundamentals.

Industry

• Industry P/E at 57.9, lower than BDL’s 76.9, highlighting premium valuation.
• Defense sector outlook remains strong with rising government spending and order inflows.

Conclusion

⚖️ BDL is consolidating near support with weak RSI and strongly negative MACD, showing short-term weakness but potential for a bounce. Traders may consider entry around 1,350–1,370 ₹ with exits near 1,480–1,500 ₹. The stock is in a corrective phase, awaiting breakout above 1,500 ₹ for trend reversal.