BLUESTARCO - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.5

📊 BLUESTARCO is currently consolidating near its 50 DMA with mixed momentum indicators. While MACD is positive, RSI and volume trends suggest indecision and limited short-term strength.

📊 Technical Analysis Summary

• Trend Status: Consolidating
• RSI (49.8): Neutral — no clear momentum
• MACD (14.9): Positive crossover — early bullish signal
• Volume: ~28% below 1-week average — weak conviction
• DMA 50 & 200: Price hovering around 50 DMA, slightly above 200 DMA — trend indecisive
• Bollinger Bands: Price near mid-band — no breakout signal

🎯 Entry & Exit Zones

• Support Levels: ₹1,860, ₹1,839, ₹1,800
• Resistance Levels: ₹1,950, ₹2,050, ₹2,150
• Optimal Entry: ₹1,860–₹1,900 (on dip)
• Exit Target: ₹2,050–₹2,150 (short-term resistance)

✅ Positive

• Strong ROCE (22.8%) and ROE (18.2%) — efficient capital deployment
• EPS of ₹21.8 — solid earnings profile
• MACD crossover suggests potential for short-term upside
• DII holding increased by 1.95% — strong domestic investor confidence
• Low debt-to-equity ratio (0.18) — healthy balance sheet

⚠️ Limitation

• Price near 50 DMA — trend lacks momentum
• Volume below average — weak participation
• High P/E (87.8) vs industry — valuation premium
• Dividend yield of 0.47% — modest income potential

📉 Company Negative News

• Quarterly PAT dropped from ₹157 Cr to ₹109 Cr — 25.7% decline
• FII holding declined by 0.16% — slight institutional caution

📈 Company Positive News

• Stock up 43.4% from 52-week low — recovery underway
• Strong DII accumulation and improving technical structure

🏭 Industry

• Sector: Consumer Durables / Air Conditioning & Cooling Solutions
• Industry P/E: 57.4 vs BLUESTARCO’s P/E: 87.8 — relatively overvalued
• Sector outlook supported by rising demand for energy-efficient appliances and infrastructure growth

🧾 Conclusion

• BLUESTARCO is consolidating with mild bullish technical signals
• Entry near ₹1,860–₹1,900 with targets at ₹2,050–₹2,150
• Monitor volume and RSI for signs of trend confirmation
• Valuation remains elevated; long-term investors should assess earnings consistency and sector positioning