BLUESTARCO - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.7

📈 Technical Analysis

• Chart Patterns: Stock is trading well below its 52-week high (2,420 ₹), showing weakness and consolidation after a decline.
• Moving Averages: Current price (1,781 ₹) is slightly below both 50 DMA (1,816 ₹) and 200 DMA (1,823 ₹), indicating mild bearish bias.
• RSI: At 62.8, RSI is moderately high, suggesting the stock is nearing overbought territory.
• MACD: Negative (-1.62), showing weak momentum and possible short-term correction.
• Bollinger Bands: Price is near the upper band, signaling resistance and potential consolidation.
• Volume Trends: Current volume (2,64,277) is higher than 1-week average (1,82,563), indicating active participation but with selling pressure.

🎯 Momentum & Trade Zones

• Support Levels: 1,750 ₹ (near-term), 1,682 ₹ (200 DMA), and strong base at 1,600 ₹.
• Resistance Levels: 1,820–1,850 ₹ (near-term resistance), 2,000 ₹ (major resistance), 2,420 ₹ (52-week high).
• Entry Zone: 1,740–1,760 ₹ (near support, favorable risk-reward).
• Exit Zone: 1,820–1,900 ₹ (near resistance/top band).
• Trend Status: Consolidating with mild bearish signals due to negative MACD and resistance near moving averages.

✅ Positive

• Strong ROCE (22.8%) and ROE (18.2%) indicate efficient capital use.
• DII holdings increased significantly (+1.95%), showing strong domestic institutional confidence.
• EPS of 21.0 ₹ supports earnings visibility.
• Dividend yield of 0.49% provides shareholder returns.

⚠️ Limitation

• High P/E ratio (84.7) compared to industry average (49.3), suggesting expensive valuation.
• Quarterly PAT declined (69.9 Cr. vs 109 Cr.), showing earnings pressure.
• MACD remains negative, signaling weak short-term momentum.
• Stock trading at only 29% of its 52-week range, reflecting underperformance.

📉 Company Negative News

• FII holdings decreased (-0.16%), showing reduced foreign investor confidence.
• Quarterly profit fell by -17.4%, indicating operational challenges.

📊 Company Positive News

• DII stake increased strongly, boosting investor sentiment.
• EPS of 21.0 ₹ highlights profitability despite recent earnings decline.

🏭 Industry

• Industry P/E at 49.3, lower than Blue Star’s valuation, suggesting premium pricing.
• Consumer durables and cooling solutions sector benefiting from rising demand in residential and commercial markets.

📝 Conclusion

• Blue Star is consolidating with mild bearish signals, trading below key moving averages.
• Fundamentals show strong efficiency metrics, but valuations are stretched and earnings have weakened.
• Optimal strategy: Buy near support (1,740–1,760 ₹) and book profits near resistance (1,820–1,900 ₹).
• Short-term outlook: Consolidation with risk of correction; long-term outlook depends on earnings recovery and valuation moderation.