VEDL - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 4.0
| Stock Code | VEDL | Market Cap | 1,29,062 Cr. | Current Price | 330 ₹ | High / Low | 341 ₹ |
| Stock P/E | 71.0 | Book Value | 200 ₹ | Dividend Yield | 13.2 % | ROCE | 2.74 % |
| ROE | 2.37 % | Face Value | 1.00 ₹ | DMA 50 | 286 ₹ | DMA 200 | 232 ₹ |
| Chg in FII Hold | 1.78 % | Chg in DII Hold | -1.88 % | PAT Qtr | -298 Cr. | PAT Prev Qtr | -56.7 Cr. |
| RSI | 64.4 | MACD | 17.2 | Volume | 1,51,82,137 | Avg Vol 1Wk | 2,23,97,308 |
| Low price | 152 ₹ | High price | 341 ₹ | PEG Ratio | -1.22 | Debt to equity | 0.14 |
| 52w Index | 94.4 % | Qtr Profit Var | 16.1 % | EPS | 45.3 ₹ | Industry PE | 37.8 |
📊 Chart Patterns & Trend: VEDL is trading above both its 50 DMA (286 ₹) and 200 DMA (232 ₹), confirming strong bullish momentum. Price action shows an uptrend with consolidation near the 341 ₹ high. Trend bias remains positive but cautious due to earnings weakness.
📈 Moving Averages: Current price (330 ₹) is comfortably above both DMA levels, reinforcing bullish momentum. Sustained trading above 320 ₹ strengthens outlook.
⚖️ RSI: At 64.4, RSI is moderately high, suggesting strong momentum but nearing overbought territory.
📉 MACD: Positive at 17.2, 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 (1,51,82,137) is lower than 1-week average (2,23,97,308), showing reduced participation despite price strength.
🎯 Entry Zone: 310–325 ₹ (near 50 DMA support).
🚪 Exit Zone: 340–345 ₹ (near resistance and 52-week high).
📌 Momentum Signal: Short-term bullish trend with consolidation near highs. A breakout above 341 ₹ could trigger fresh rally, but caution advised due to weak fundamentals.
Positive
- ✅ Dividend yield at 13.2% provides strong income appeal.
- ✅ EPS at 45.3 ₹ supports valuation strength.
- ✅ FII holdings increased by 1.78%, reflecting foreign investor confidence.
Limitation
- ⚠️ High P/E (71.0) compared to industry PE (37.8) suggests steep overvaluation.
- ⚠️ ROCE (2.74%) and ROE (2.37%) are weak, indicating poor efficiency.
- ⚠️ Volume below average, requiring stronger participation for sustained breakout.
Company Negative News
- 📉 PAT declined sharply from -56.7 Cr. to -298 Cr., showing earnings weakness.
- 📉 DII holdings decreased by 1.88%, reflecting reduced domestic institutional support.
Company Positive News
- 📈 Stock has delivered strong 52-week performance (94.4%).
- 📈 Dividend yield remains attractive for income-focused investors.
Industry
- 🏭 Industry PE at 37.8 indicates sector is moderately valued compared to VEDL’s premium.
- 🏭 Sector outlook remains cyclical, with commodity price movements driving performance.
Conclusion
🔎 VEDL is in a bullish trend with consolidation near highs. Entry near 310–325 ₹ offers favorable risk-reward, while resistance at 340–345 ₹ should be watched for exits. Despite strong technical momentum, weak fundamentals and negative PAT raise caution. Investors should monitor earnings recovery before expecting sustained bullish breakout.