BLS - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.6

📊 Chart Patterns & Trend: BLS is consolidating after a steep correction from its 52-week high of 522 ₹. The current price (323 ₹) is hovering around the 50 DMA (326 ₹) but below the 200 DMA (354 ₹), showing short-term indecision and medium-term weakness.

📈 Moving Averages:

- Price near 50 DMA suggests immediate support.

- Trading below 200 DMA indicates medium-term bearish undertone.

- A breakout above 354 ₹ is needed to regain strength.

📉 RSI: At 46.5, RSI is neutral, neither overbought nor oversold, reflecting consolidation.

📉 MACD: Slightly negative (-2.06), showing weak bearish crossover and lack of strong momentum.

📊 Bollinger Bands: Price is near the mid-band, confirming sideways consolidation with no breakout signals.

📊 Volume Trends: Current volume (9,35,816) is higher than the 1-week average (6,87,008), suggesting active participation and accumulation despite weak technicals.

🎯 Entry Zone: 315–325 ₹ (near 50 DMA support).

🎯 Exit Zone: 350–360 ₹ (near 200 DMA resistance).

⚡ Support Levels: 315 ₹ and 277 ₹ (major support).

⚡ Resistance Levels: 354 ₹ and 400 ₹.

Positive

• Strong ROE (22%) and ROCE (19%) indicate efficient capital use.
• Debt-to-equity ratio is low (0.09), ensuring financial stability.
• Quarterly PAT improved to 4.90 Cr. from 0.75 Cr. in the previous quarter.
• Volume participation is strong, showing investor interest.

Limitation

• Extremely high P/E (1,774) compared to industry average (39.9), making valuation unsustainable.
• EPS is very low (0.18 ₹), limiting earnings visibility.
• PEG ratio (173) indicates poor growth-to-valuation alignment.
• Stock trading below 200 DMA reflects medium-term weakness.

Company Negative News

• Quarterly profit variation is negative (-73.8%), raising concerns about earnings stability.
• FII holdings decreased (-1.72%), showing reduced foreign investor confidence.
• MACD negative, confirming weak momentum.

Company Positive News

• Quarterly PAT recovery from 0.75 Cr. to 4.90 Cr. shows operational improvement.
• DII holdings increased slightly (+0.03%), reflecting domestic support.
• Strong fundamentals with low debt and healthy ROE/ROCE.

Industry

• Industry P/E at 39.9, far lower than BLS’s 1,774, highlighting extreme overvaluation.
• Sector outlook remains steady with demand for outsourcing and services.

Conclusion

⚖️ BLS is consolidating with neutral RSI and weak MACD, showing indecision near support. Short-term traders may consider entry around 315–325 ₹ with exits near 350–360 ₹. The stock is consolidating, awaiting a breakout above 354 ₹ to regain bullish momentum, but valuations remain stretched and earnings visibility is limited.