VBL - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 4.5
| Stock Code | VBL | Market Cap | 1,82,351 Cr. | Current Price | 540 ₹ | High / Low | 541 ₹ |
| Stock P/E | 65.4 | Book Value | 55.5 ₹ | Dividend Yield | 0.28 % | ROCE | 19.1 % |
| ROE | 14.6 % | Face Value | 2.00 ₹ | DMA 50 | 479 ₹ | DMA 200 | 475 ₹ |
| Chg in FII Hold | -0.80 % | Chg in DII Hold | 0.79 % | PAT Qtr | 788 Cr. | PAT Prev Qtr | 261 Cr. |
| RSI | 72.0 | MACD | 15.8 | Volume | 2,08,19,520 | Avg Vol 1Wk | 90,79,559 |
| Low price | 381 ₹ | High price | 541 ₹ | PEG Ratio | 2.57 | Debt to equity | 0.02 |
| 52w Index | 98.9 % | Qtr Profit Var | 16.2 % | EPS | 8.24 ₹ | Industry PE | 50.4 |
📊 Chart Patterns & Trend: VBL is trading above both its 50 DMA (479 ₹) and 200 DMA (475 ₹), confirming a strong uptrend. Price action shows bullish continuation with consolidation near the 541 ₹ high. Trend bias remains strongly bullish.
📈 Moving Averages: Current price (540 ₹) is well above both DMA levels, reinforcing bullish momentum. Sustained trading above 530 ₹ strengthens outlook.
⚖️ RSI: At 72.0, RSI is in overbought territory, suggesting caution as short-term pullbacks are possible.
📉 MACD: Positive at 15.8, confirming bullish undertone and signaling continuation of upward momentum.
📊 Bollinger Bands: Price is near the upper band, indicating strong buying interest but also risk of short-term correction.
📦 Volume Trends: Current volume (2,08,19,520) is significantly higher than 1-week average (90,79,559), showing strong participation and institutional activity driving momentum.
🎯 Entry Zone: 510–525 ₹ (near 50 DMA support).
🚪 Exit Zone: 540–550 ₹ (near resistance and 52-week high).
📌 Momentum Signal: Short-term bullish trend with overbought signals. A breakout above 541 ₹ could trigger fresh rally, but caution advised due to stretched RSI.
Positive
- ✅ Strong ROCE (19.1%) and ROE (14.6%) reflect efficient capital use.
- ✅ Debt-to-equity ratio at 0.02 indicates very low leverage.
- ✅ PAT surged from 261 Cr. to 788 Cr. quarter-on-quarter, showing robust earnings growth.
Limitation
- ⚠️ High P/E (65.4) compared to industry PE (50.4) suggests premium valuation.
- ⚠️ RSI at 72.0 indicates overbought conditions, risk of short-term correction.
- ⚠️ Dividend yield (0.28%) is low, limiting income appeal.
Company Negative News
- 📉 FII holdings decreased by 0.80%, showing reduced foreign investor confidence.
- 📉 Valuation stretched compared to peers, raising sustainability concerns.
Company Positive News
- 📈 PAT growth of 16.2% quarter-on-quarter highlights strong operational performance.
- 📈 DII holdings increased by 0.79%, reflecting domestic institutional support.
- 📈 Stock has delivered strong 52-week performance (98.9%).
Industry
- 🏭 Industry PE at 50.4 indicates sector is moderately valued compared to VBL’s premium.
- 🏭 PEG ratio at 2.57 suggests growth is reasonably aligned with valuation, though slightly expensive.
Conclusion
🔎 VBL is in a bullish trend with consolidation near highs. Entry near 510–525 ₹ offers favorable risk-reward, while resistance at 540–550 ₹ should be watched for exits. A breakout above 541 ₹ could trigger fresh upside momentum, but RSI overbought levels suggest caution. Investors should monitor volume and institutional flows for confirmation of sustained rally.