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VBL - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.5

Last Updated Time : 19 Mar 26, 09:02 pm

Technical Rating: 3.5

Stock Code VBL Market Cap 1,40,356 Cr. Current Price 415 ₹ High / Low 568 ₹
Stock P/E 54.6 Book Value 55.5 ₹ Dividend Yield 0.24 % ROCE 19.1 %
ROE 14.6 % Face Value 2.00 ₹ DMA 50 450 ₹ DMA 200 476 ₹
Chg in FII Hold -1.62 % Chg in DII Hold 1.78 % PAT Qtr 261 Cr. PAT Prev Qtr 577 Cr.
RSI 36.9 MACD -13.8 Volume 70,08,926 Avg Vol 1Wk 82,30,189
Low price 400 ₹ High price 568 ₹ PEG Ratio 2.14 Debt to equity 0.02
52w Index 8.75 % Qtr Profit Var 25.1 % EPS 7.91 ₹ Industry PE 47.8

📊 Technical Analysis

  • Chart Patterns: Price is below both 50 DMA (₹450) and 200 DMA (₹476), showing weakness.
  • RSI: At 36.9, near oversold territory, suggesting possible support but still bearish.
  • MACD: Negative (-13.8), confirming bearish momentum.
  • Bollinger Bands: Price near lower band, indicating selling pressure.
  • Volume Trends: Current volume (70.1L) below 1-week average (82.3L), showing reduced participation.

📈 Momentum & Signals

  • Short-term Momentum: Weak, bearish bias.
  • Support Zone: ₹400 – ₹415 (recent low and current price).
  • Resistance Zone: ₹450 – ₹476 (DMA levels).
  • Optimal Entry: Around ₹400–₹415 if support holds.
  • Optimal Exit: Near ₹450–₹476 unless breakout occurs.
  • Trend Status: Reversing downward after failing to sustain higher levels.

✅ Positive

  • Strong ROCE (19.1%) and ROE (14.6%).
  • Low debt-to-equity (0.02), financially stable.
  • EPS at ₹7.91, consistent earnings base.

⚠️ Limitation

  • High P/E (54.6) compared to industry average (47.8).
  • Quarterly PAT declined sharply from ₹577 Cr. to ₹261 Cr.
  • Stock trading below both 50 DMA and 200 DMA.

📉 Company Negative News

  • FII holding decreased significantly (-1.62%), showing reduced foreign investor confidence.
  • Quarterly profit decline indicates margin pressure.

📈 Company Positive News

  • DII holding increased (+1.78%), strong domestic institutional support.
  • PEG ratio at 2.14, suggesting moderate valuation relative to growth.

🏭 Industry

  • Industry P/E at 47.8, lower than company’s 54.6, suggesting sector is relatively cheaper.
  • Sector growth modest with 8.75% index gain in 52 weeks.

🔎 Conclusion

VBL is showing bearish technical signals, trading below both 50 DMA and 200 DMA with weak RSI and negative MACD. Despite strong fundamentals like ROCE and low debt, valuations remain stretched and profits have declined sharply. Short-term traders should watch ₹400–₹415 as support and ₹450–₹476 as resistance. The stock is currently reversing downward, and sustained movement above ₹476 would be needed to signal recovery.

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