VEDL - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.9

📈 VEDL is currently in a trending phase with bullish momentum supported by MACD and price action above key moving averages. Entry zone: ₹475–₹494; exit zone: ₹515–₹525. Watch for RSI crossing 60 and volume pickup to confirm breakout continuation.

📊 Technical Overview

• Price Action: Trading at ₹494, above both 50-DMA (₹469) and 200-DMA (₹448), indicating bullish trend continuation.
• RSI (57.6): Mildly bullish, suggesting upward momentum with room before overbought territory.
• MACD (11.9): Strong bullish crossover, confirming positive momentum.
• Bollinger Bands: Price near upper band, indicating strength but possible short-term resistance.
• Volume: Slightly below 1-week average, showing moderate participation and potential for breakout with volume spike.
• Support Zones: ₹475 (S1), ₹460 (S2)
• Resistance Zones: ₹515 (R1), ₹525 (R2)

✅ Positive

• Strong ROCE (18.5%) and ROE (21.8%) reflect solid operational efficiency.
• EPS of ₹28.5 supports valuation and earnings visibility.
• Dividend yield of 8.81% offers attractive income potential.
• FII holdings increased (+0.48%), showing foreign investor confidence.

⚠️ Limitation

• PEG ratio of -5.08 indicates poor earnings growth relative to valuation.
• Volume slightly below average, limiting breakout conviction.
• Debt-to-equity ratio of 0.76 is moderately high, raising leverage concerns.
• Stock P/E (20.5) is below industry average (43.7), suggesting cautious valuation.

📉 Company Negative News

• Quarterly PAT dropped from ₹3,927 Cr. to ₹2,195 Cr., a 72% decline.
• DII holdings declined (-0.22%), reflecting reduced domestic institutional confidence.

📈 Company Positive News

• MACD and RSI trends suggest strong technical recovery.
• Price action above key moving averages confirms bullish sentiment.

🏢 Industry

• Metals and mining sector benefits from global commodity demand and infrastructure spending.
• Industry P/E of 43.7 reflects high growth expectations across peers.

🧭 Conclusion

• VEDL is trending upward with bullish technical indicators and strong dividend support.
• Entry zone: ₹475–₹494; exit zone: ₹515–₹525 for short-term swing trades.
• Long-term investors may accumulate on dips, supported by strong fundamentals and sector resilience.