VEDL - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 4.1
| Stock Code | VEDL | Market Cap | 2,55,758 Cr. | Current Price | 655 ₹ | High / Low | 770 ₹ |
| Stock P/E | 51.0 | Book Value | 189 ₹ | Dividend Yield | 6.64 % | ROCE | 18.5 % |
| ROE | 21.8 % | Face Value | 1.00 ₹ | DMA 50 | 611 ₹ | DMA 200 | 514 ₹ |
| Chg in FII Hold | 1.07 % | Chg in DII Hold | -0.94 % | PAT Qtr | 33.5 Cr. | PAT Prev Qtr | -449 Cr. |
| RSI | 51.1 | MACD | 31.5 | Volume | 5,21,00,423 | Avg Vol 1Wk | 3,86,32,273 |
| Low price | 362 ₹ | High price | 770 ₹ | PEG Ratio | -12.6 | Debt to equity | 0.71 |
| 52w Index | 71.8 % | Qtr Profit Var | 111 % | EPS | 31.3 ₹ | Industry PE | 30.7 |
📊 Chart Patterns & Trend: VEDL is trading above both its 50 DMA (611 ₹) and 200 DMA (514 ₹), indicating strong bullish momentum. Price action suggests consolidation between 640–680 ₹, with strong support at 611–620 ₹ and resistance near 700–720 ₹. Trendlines show an upward bias with potential continuation.
📈 Moving Averages: Current price (655 ₹) is comfortably above both 50 DMA and 200 DMA, confirming bullish strength. Sustained move above 700 ₹ would signal trend continuation toward 770 ₹.
📉 RSI: At 51.1, RSI is neutral, suggesting balanced momentum with room for further upside.
📈 MACD: Positive at 31.5, confirming bullish momentum in the short term.
📊 Bollinger Bands: Price is mid-band, indicating consolidation with potential breakout if volume sustains.
📊 Volume Trends: Current volume (5,21,00,423) is significantly above the 1-week average (3,86,32,273), showing strong participation and buying interest.
🎯 Entry Zone: 640–655 ₹ (near support, risk-managed entry).
🎯 Exit Zone: 700–720 ₹ (resistance zone, profit booking advisable).
📌 Momentum Signal: Strong short-term bullish momentum, trending upward with consolidation around mid-levels. Breakout above 700 ₹ would confirm continuation toward 770 ₹.
Positive
- Strong ROCE (18.5%) and ROE (21.8%) highlight efficient capital use.
- High dividend yield of 6.64% provides attractive investor returns.
- Quarterly profit turnaround from -449 Cr. to 33.5 Cr. shows operational recovery.
- FII holdings increased (+1.07%), reflecting foreign investor confidence.
Limitation
- High P/E (51.0) compared to industry average (30.7) suggests overvaluation.
- Debt-to-equity ratio of 0.71 indicates moderate leverage risk.
- Negative PEG ratio (-12.6) highlights poor growth visibility.
Company Negative News
- DII holdings decreased (-0.94%), showing reduced domestic institutional support.
Company Positive News
- Quarterly profit variation (+111%) highlights strong recovery momentum.
- EPS of 31.3 ₹ reflects solid earnings base.
Industry
- Industry P/E at 30.7 indicates sector is moderately valued compared to the company’s higher valuation.
- 52-week index return of 71.8% shows strong sector momentum.
Conclusion
⚖️ VEDL is trending upward with strong bullish signals supported by volume and moving averages. Entry near 640–655 ₹ offers favorable risk-reward, while exits should be considered around 700–720 ₹. Sustained breakout above 700 ₹ could push toward 770 ₹. Fundamentally strong but slightly overvalued, making it a momentum-driven play in the near term.