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VEDL - Technical Analysis with Chart Patterns & Indicators

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Rating: 4

Last Updated Time : 19 Mar 26, 09:02 pm

Technical Rating: 4.0

Stock Code VEDL Market Cap 2,65,746 Cr. Current Price 679 ₹ High / Low 770 ₹
Stock P/E 53.0 Book Value 189 ₹ Dividend Yield 6.41 % ROCE 18.5 %
ROE 21.8 % Face Value 1.00 ₹ DMA 50 674 ₹ DMA 200 564 ₹
Chg in FII Hold 1.07 % Chg in DII Hold -0.94 % PAT Qtr 33.5 Cr. PAT Prev Qtr -449 Cr.
RSI 45.0 MACD 4.30 Volume 1,16,42,845 Avg Vol 1Wk 1,19,58,354
Low price 362 ₹ High price 770 ₹ PEG Ratio -13.1 Debt to equity 0.71
52w Index 77.8 % Qtr Profit Var 111 % EPS 31.3 ₹ Industry PE 27.7

📊 Technical Analysis

  • Chart Patterns: Price is above 50 DMA (₹674) and well above 200 DMA (₹564), showing strong bullish alignment.
  • RSI: At 45.0, neutral zone, neither overbought nor oversold.
  • MACD: Positive (4.30), confirming bullish momentum.
  • Bollinger Bands: Price near mid-band, suggesting consolidation with upward bias.
  • Volume Trends: Current volume (116.4L) slightly below 1-week average (119.6L), showing stable participation.

📈 Momentum & Signals

  • Short-term Momentum: Bullish, supported by MACD and DMA alignment.
  • Support Zone: ₹674 – ₹680 (near 50 DMA and current price).
  • Resistance Zone: ₹750 – ₹770 (recent high).
  • Optimal Entry: Around ₹674–₹680 if support holds.
  • Optimal Exit: Near ₹750–₹770 unless breakout continues.
  • Trend Status: Trending upward with bullish bias.

✅ Positive

  • Strong ROCE (18.5%) and ROE (21.8%).
  • Dividend yield of 6.41%, attractive for income investors.
  • Quarterly PAT turnaround from -₹449 Cr. to ₹33.5 Cr.
  • EPS at ₹31.3, solid earnings base.

⚠️ Limitation

  • High P/E (53.0) compared to industry average (27.7).
  • Debt-to-equity at 0.71, relatively high leverage.
  • PEG ratio negative (-13.1), indicating valuation concerns.

📉 Company Negative News

  • DII holding decreased (-0.94%), showing weaker domestic support.

📈 Company Positive News

  • FII holding increased (+1.07%), showing renewed foreign investor confidence.
  • Quarterly profit variation (+111%) indicates strong recovery momentum.

🏭 Industry

  • Industry P/E at 27.7, much lower than company’s 53.0, suggesting sector is cheaper.
  • Sector growth strong with 77.8% index gain in 52 weeks.

🔎 Conclusion

VEDL is trending upward with bullish signals, supported by MACD and DMA alignment. Despite high leverage and stretched valuations, fundamentals show strong recovery with improved profitability and attractive dividend yield. Short-term traders should watch ₹674–₹680 as support and ₹750–₹770 as resistance. A breakout above ₹770 could extend the rally, while failure to hold ₹674 may trigger consolidation.

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