VEDL - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:55 pm

Technical Rating: 4.0

📊 Chart & Trend Analysis:

VEDL is trading at ₹582, right at its 52-week high (₹583), showing strong bullish momentum. The stock is well above its 50 DMA (₹514) and 200 DMA (₹470), confirming a strong uptrend. RSI at 75 indicates overbought conditions, suggesting caution for new entries. MACD at 15.4 is strongly positive, reinforcing bullish momentum. Bollinger Bands show price near the upper band, signaling potential short-term exhaustion. Current volume (1,56,54,512) is below the 1-week average (2,44,04,838), indicating reduced participation despite price strength.

🔎 Momentum Signals:

- Short-term momentum: Strong bullish but overbought.

- Support levels: ₹570 (near-term), ₹550 (trendline), ₹514 (DMA 50).

- Resistance levels: ₹583 (current high), ₹600 (psychological level).

- Optimal entry zone: ₹560–575 (on pullback).

- Optimal exit zone: ₹590–605.

- Current phase: Trending strongly upward, but nearing overbought consolidation zone.

Positive

• High dividend yield of 7.45% provides strong investor returns.
• ROCE (18.5%) and ROE (21.8%) reflect efficient capital utilization.
• Stock trading above both 50 DMA and 200 DMA confirms strong bullish trend.
• EPS of ₹28.5 supports earnings stability.

Limitation

• RSI at 75 indicates overbought conditions, raising risk of short-term correction.
• Quarterly PAT dropped sharply from ₹3,927 Cr. to ₹2,195 Cr. (-72% variation).
• Debt-to-equity ratio of 0.71 is relatively high compared to peers.
• PEG ratio of -5.98 highlights weak growth prospects relative to valuation.

Company Negative News

• Quarterly profit decline raises concerns about earnings sustainability.
• DII holding decreased by -0.22%, showing reduced domestic institutional confidence.

Company Positive News

• FII holding increased by 0.48%, reflecting improved foreign investor sentiment.
• Dividend yield remains one of the strongest in the sector.

Industry

• Industry P/E at 47.6 is higher than VEDL’s (24.2), suggesting VEDL trades at a discount to peers.
• Sector outlook remains cyclical but supported by commodity demand trends.

Conclusion

🚀 VEDL is in a strong uptrend, trading at its 52-week high with bullish momentum. Entry is best on pullbacks near ₹560–575, while exits around ₹590–605 are optimal. Strong fundamentals and high dividend yield support long-term value, but overbought RSI and declining profits warrant caution. Short-term trend is bullish, with potential consolidation ahead.