VGUARD - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.9
| Stock Code | VGUARD | Market Cap | 15,089 Cr. | Current Price | 345 ₹ | High / Low | 413 ₹ |
| Stock P/E | 59.1 | Book Value | 47.5 ₹ | Dividend Yield | 0.44 % | ROCE | 17.2 % |
| ROE | 13.6 % | Face Value | 1.00 ₹ | DMA 50 | 331 ₹ | DMA 200 | 356 ₹ |
| Chg in FII Hold | -0.33 % | Chg in DII Hold | 0.46 % | PAT Qtr | 55.7 Cr. | PAT Prev Qtr | 66.0 Cr. |
| RSI | 64.7 | MACD | 1.22 | Volume | 2,34,726 | Avg Vol 1Wk | 5,40,603 |
| Low price | 298 ₹ | High price | 413 ₹ | PEG Ratio | 14.7 | Debt to equity | 0.03 |
| 52w Index | 41.0 % | Qtr Profit Var | 15.9 % | EPS | 5.55 ₹ | Industry PE | 48.5 |
📊 Chart Patterns & Trend: VGUARD is trading above its 50 DMA (331 ₹) but slightly below its 200 DMA (356 ₹). This indicates short-term strength but medium-term resistance. The price action suggests consolidation between 330–356 ₹, with strong support at 330 ₹ and resistance near 356–370 ₹.
📈 Moving Averages: Current price (345 ₹) is above the 50 DMA but below the 200 DMA, showing mixed signals. Sustained move above 356 ₹ would confirm bullish reversal.
📉 RSI: At 64.7, RSI is approaching overbought territory, suggesting caution as upside momentum may be limited.
📈 MACD: Positive at 1.22, indicating mild bullish momentum in the short term.
📊 Bollinger Bands: Price is near the upper band, signaling potential resistance and limited upside unless volume expands.
📊 Volume Trends: Current volume (2,34,726) is significantly below the 1-week average (5,40,603), showing weak participation and lack of strong buying conviction.
🎯 Entry Zone: 330–340 ₹ (near support, risk-managed entry).
🎯 Exit Zone: 356–370 ₹ (resistance zone, profit booking advisable).
📌 Momentum Signal: Short-term bullish momentum but overall consolidation phase. A breakout above 370 ₹ would confirm trend reversal.
Positive
- Strong ROCE (17.2%) and ROE (13.6%) indicate efficient capital utilization.
- Low debt-to-equity ratio (0.03) ensures financial stability.
- Quarterly profit variation (+15.9%) shows improving earnings trend.
- DII holdings increased (+0.46%), reflecting domestic investor confidence.
Limitation
- High P/E (59.1) compared to industry average (48.5) suggests overvaluation.
- PEG ratio of 14.7 indicates expensive growth prospects.
- Current trading volumes are weak, limiting momentum strength.
Company Negative News
- Sequential PAT decline from 66 Cr. to 55.7 Cr. indicates margin pressure.
- FII holdings decreased (-0.33%), showing reduced foreign investor confidence.
Company Positive News
- Quarterly profit growth (+15.9%) highlights operational resilience.
- DII support increased, reflecting strong domestic institutional interest.
Industry
- Industry P/E at 48.5 indicates sector is moderately valued compared to the company.
- 52-week index return of 41% shows healthy sector performance.
Conclusion
⚖️ VGUARD is consolidating with short-term bullish signals but faces medium-term resistance. Entry near 330–340 ₹ offers a favorable risk-reward setup, while exits should be considered around 356–370 ₹. Sustained breakout above 370 ₹ is required for trend reversal. Fundamentally strong but technically cautious in the near term.
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