VGUARD - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.4

📊 Chart & Trend Analysis:

VGUARD is trading at ₹329, below both its 50 DMA (₹348) and 200 DMA (₹367), indicating short-term and medium-term weakness. RSI at 34.5 suggests the stock is approaching oversold territory. MACD at -6.95 shows bearish momentum. Bollinger Bands point to price near the lower band, signaling potential downside exhaustion but no clear reversal yet. Current volume (89,719) is significantly below the 1-week average (1,63,764), reflecting weak participation and lack of buying interest.

🔎 Momentum Signals:

- Short-term momentum: Bearish with oversold signals emerging.

- Support levels: ₹320 (near-term), ₹300 (major support).

- Resistance levels: ₹340 (DMA 50), ₹367 (DMA 200), ₹380.

- Optimal entry zone: ₹310–325 (if RSI stabilizes).

- Optimal exit zone: ₹345–365.

- Current phase: Trending down with signs of consolidation near support.

Positive

• Low debt-to-equity ratio (0.03) ensures strong balance sheet stability.
• Quarterly PAT growth of 26.4% indicates improving profitability.
• DII holding increased by 1.25%, showing domestic institutional confidence.

Limitation

• High P/E ratio (57.9) compared to industry average (49.3) suggests overvaluation.
• PEG ratio of 14.4 highlights poor valuation relative to growth prospects.
• Stock trading below both 50 DMA and 200 DMA confirms bearish trend.
• Weak volume participation reduces chances of a strong rebound.

Company Negative News

• FII holding decreased by -0.10%, reflecting reduced foreign investor interest.

Company Positive News

• PAT rose from ₹55.7 Cr. to ₹66.0 Cr., showing strong quarterly earnings growth.
• DII support increased, balancing out FII weakness.

Industry

• Industry P/E at 49.3 is lower than VGUARD’s, suggesting sector peers may be more attractively valued.
• Sector outlook remains stable with moderate demand growth.

Conclusion

⚠️ VGUARD is in a downtrend, trading below key moving averages with bearish momentum. Entry near ₹310–325 may be favorable if RSI stabilizes, while exits around ₹345–365 are optimal. Fundamentals show earnings growth and strong balance sheet, but valuations remain stretched. Short-term trend is bearish with possible consolidation near support.