BLS - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

Technical Rating: 2.4

📉 BLS is currently in a consolidation phase with bearish momentum. Weak technical indicators and declining volume suggest caution for short-term traders.

📊 Technical Analysis Summary

• Trend Status: Consolidating with downside bias
• RSI (43.5): Neutral to weak — no strong momentum
• MACD (-9.04): Bearish crossover — downward pressure persists
• Volume: Significantly below 1-week average — low trading interest
• DMA 50 & 200: Price below both — bearish signal
• Bollinger Bands: Price near lower band — potential for technical bounce, but unconfirmed

🎯 Entry & Exit Zones

• Support Levels: ₹305, ₹290, ₹277
• Resistance Levels: ₹340, ₹360, ₹385
• Optimal Entry: ₹305–₹315 (if RSI stabilizes)
• Exit Target: ₹340–₹360 (short-term resistance)

✅ Positive

• Strong ROCE (19.0%) and ROE (22.0%) — efficient capital use
• Low debt-to-equity ratio (0.66) — manageable leverage
• Price up 17.1% from 52-week low — some recovery potential

⚠️ Limitation

• Price below both 50 DMA and 200 DMA — bearish structure
• Extremely high P/E (617) and PEG (60.1) — severe overvaluation
• Volume significantly below average — weak participation
• Low dividend yield (0.31%)

📉 Company Negative News

• Quarterly PAT dropped from ₹1.58 Cr to ₹0.75 Cr — 48.3% decline
• FII holding declined by 1.72% — weakening institutional sentiment

📈 Company Positive News

• ROE and ROCE remain strong despite earnings dip
• Stock has rebounded from 52-week low

🏭 Industry

• Sector: IT Services / Digital Solutions
• Industry P/E: 37.4 vs BLS’s P/E: 617 — highly overvalued
• Sector outlook stable but competitive

🧾 Conclusion

• BLS is consolidating with bearish momentum
• Entry near ₹305–₹315 with tight stop-loss
• Exit near ₹340–₹360 if bounce occurs
• Valuation concerns and weak volume suggest caution for short-term positions