VBL - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.4
| Stock Code | VBL | Market Cap | 1,58,784 Cr. | Current Price | 469 ₹ | High / Low | 593 ₹ |
| Stock P/E | 60.5 | Book Value | 53.4 ₹ | Dividend Yield | 0.21 % | ROCE | 23.8 % |
| ROE | 20.1 % | Face Value | 2.00 ₹ | DMA 50 | 480 ₹ | DMA 200 | 489 ₹ |
| Chg in FII Hold | -1.62 % | Chg in DII Hold | 1.78 % | PAT Qtr | 577 Cr. | PAT Prev Qtr | 1,160 Cr. |
| RSI | 41.0 | MACD | -3.75 | Volume | 26,18,877 | Avg Vol 1Wk | 59,56,542 |
| Low price | 419 ₹ | High price | 593 ₹ | PEG Ratio | 0.90 | Debt to equity | 0.02 |
| 52w Index | 28.6 % | Qtr Profit Var | 17.3 % | EPS | 7.76 ₹ | Industry PE | 45.4 |
📊 Chart Patterns & Trend: VBL is trading below both its 50 DMA (480 ₹) and 200 DMA (489 ₹), indicating short-term weakness. Price action suggests consolidation between 419–489 ₹, with strong support at 419–430 ₹ and resistance near 489–510 ₹. Trendlines show sideways movement with bearish undertone.
📈 Moving Averages: Current price (469 ₹) is below both 50 DMA and 200 DMA, signaling bearish momentum. A sustained move above 489 ₹ is required for reversal confirmation.
📉 RSI: At 41.0, RSI is in neutral-to-weak territory, closer to oversold levels, suggesting limited downside but weak momentum.
📉 MACD: Negative at -3.75, confirming bearish momentum in the short term.
📊 Bollinger Bands: Price is near the lower band, indicating oversold conditions and potential support around 419–430 ₹.
📊 Volume Trends: Current volume (26,18,877) is significantly below the 1-week average (59,56,542), showing reduced participation and weak buying interest.
🎯 Entry Zone: 419–430 ₹ (near support, risk-managed entry).
🎯 Exit Zone: 489–510 ₹ (resistance zone, profit booking advisable).
📌 Momentum Signal: Weak short-term momentum, consolidation phase with bearish undertone. A breakout above 489 ₹ is needed to confirm reversal.
Positive
- Strong ROCE (23.8%) and ROE (20.1%) highlight efficient capital use.
- Low debt-to-equity ratio (0.02) ensures financial stability.
- PEG ratio of 0.90 indicates reasonable growth valuation.
- DII holdings increased (+1.78%), reflecting domestic investor confidence.
Limitation
- High P/E (60.5) compared to industry average (45.4) suggests overvaluation.
- Quarterly PAT dropped sharply from 1,160 Cr. to 577 Cr.
- Weak trading volumes reduce momentum strength.
Company Negative News
- Decline in FII holdings (-1.62%) shows reduced foreign investor confidence.
- Sequential PAT decline highlights margin pressure.
Company Positive News
- Quarterly profit variation (+17.3%) indicates operational resilience despite sequential decline.
- EPS of 7.76 ₹ reflects solid earnings base.
Industry
- Industry P/E at 45.4 indicates sector is moderately valued compared to the company.
- 52-week index return of 28.6% shows healthy sector performance.
Conclusion
⚖️ VBL is consolidating near support with weak momentum and bearish undertones. Entry near 419–430 ₹ offers limited risk, while exits should be considered around 489–510 ₹ unless strong reversal occurs. Fundamentally strong but technically cautious in the near term.