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BLS - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.3

Last Updated Time : 03 Feb 26, 05:01 pm

Technical Rating: 3.3

Stock Code BLS Market Cap 10,462 Cr. Current Price 254 ₹ High / Low 458 ₹
Stock P/E 1,395 Book Value 1.83 ₹ Dividend Yield 0.38 % ROCE 19.0 %
ROE 22.0 % Face Value 1.00 ₹ DMA 50 303 ₹ DMA 200 340 ₹
Chg in FII Hold -0.45 % Chg in DII Hold 0.02 % PAT Qtr 4.90 Cr. PAT Prev Qtr 0.75 Cr.
RSI 27.5 MACD -14.8 Volume 10,73,451 Avg Vol 1Wk 22,06,340
Low price 246 ₹ High price 458 ₹ PEG Ratio 136 Debt to equity 0.09
52w Index 3.84 % Qtr Profit Var -73.8 % EPS 0.18 ₹ Industry PE 42.2

📈 Technical Analysis

  • Chart Patterns: Price is below both 50 DMA (303 ₹) and 200 DMA (340 ₹), showing weakness.
  • Moving Averages: Current price (254 ₹) is under both DMAs, indicating bearish bias.
  • RSI: At 27.5, oversold territory, suggesting potential rebound.
  • MACD: Negative (-14.8), confirming bearish momentum.
  • Bollinger Bands: Price is near lower band, showing oversold conditions.
  • Volume Trends: Current volume (10,73,451) is below 1-week average (22,06,340), indicating reduced participation.

📊 Momentum & Trend

  • Short-term Momentum: Bearish with RSI oversold and MACD negative.
  • Support Zone: 245 ₹ – 255 ₹ (near current levels).
  • Resistance Zone: 300 ₹ – 310 ₹ (near 50 DMA).
  • Trend: Consolidating with bearish bias.
  • Optimal Entry: Around 245 ₹ – 255 ₹ if support holds.
  • Optimal Exit: Around 300 ₹ – 310 ₹ unless breakout occurs.

✅ Positive

  • Strong ROCE (19.0%) and ROE (22.0%).
  • Low debt-to-equity (0.09), financially stable.
  • Dividend yield of 0.38% provides investor returns.

⚠️ Limitation

  • Extremely high P/E (1,395) compared to industry average (42.2), suggesting severe overvaluation.
  • PEG ratio (136) indicates valuation is stretched relative to growth.
  • EPS (0.18 ₹) is very low, showing weak profitability.

📉 Company Negative News

  • FII holding decreased (-0.45%), showing reduced foreign investor confidence.
  • Quarterly profit variation (-73.8%) highlights earnings volatility.

📈 Company Positive News

  • DII holding increased slightly (+0.02%), showing minor domestic support.
  • PAT improved (4.90 Cr vs 0.75 Cr previous quarter), showing recovery despite volatility.

🏭 Industry

  • Industry PE at 42.2, far lower than company PE, suggesting overvaluation.
  • Sector remains steady, but company performance is highly volatile compared to peers.

🔎 Conclusion

  • Stock is consolidating with bearish signals but oversold conditions may trigger short-term rebound.
  • Entry near support (245 ₹ – 255 ₹) could be favorable for speculative short-term trades.
  • Exit near resistance (300 ₹ – 310 ₹) unless breakout confirms reversal.
  • Long-term investors should be cautious due to extreme valuations and weak earnings stability.

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