VGUARD - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

Technical Rating: 3.5

📊 VGUARD is currently in a consolidation phase with neutral momentum and weak volume signals. Entry zone: ₹355–₹362; exit zone: ₹375–₹390. Watch for MACD strength and RSI movement above 50 to confirm breakout potential.

📊 Technical Overview

• Price Action: Trading at ₹362, slightly below 50-DMA (₹368) and 200-DMA (₹375), indicating short-term weakness.
• RSI (45.9): Neutral zone, suggesting lack of strong momentum in either direction.
• MACD (1.65): Mild bullish crossover, indicating early signs of upward momentum.
• Bollinger Bands: Price near mid-band, confirming consolidation.
• Volume: Significantly below 1-week average, showing weak participation and low conviction.
• Support Zones: ₹355 (S1), ₹340 (S2)
• Resistance Zones: ₹375 (R1), ₹390 (R2)

✅ Positive

• ROCE (17.2%) and ROE (13.6%) reflect solid operational efficiency.
• EPS of ₹5.69 supports valuation and earnings visibility.
• Quarterly PAT increased from ₹55.7 Cr. to ₹66.0 Cr., a 26.4% jump.
• DII holdings increased (+1.25%), showing strong domestic institutional support.

⚠️ Limitation

• Stock P/E (63.7) is higher than industry average (58.3), suggesting premium valuation.
• PEG ratio of 15.9 indicates overvaluation relative to growth.
• Price trading below key moving averages confirms short-term weakness.
• Volume trends are weak, limiting breakout potential.

📉 Company Negative News

• FII holdings declined (-0.10%), reflecting cautious foreign sentiment.
• Price has corrected ~20% from its 52-week high of ₹455.

📈 Company Positive News

• MACD crossover and improving PAT suggest early signs of technical recovery.
• Low debt-to-equity ratio (0.03) ensures financial stability and flexibility.

🏢 Industry

• Consumer electricals sector benefits from rising urban demand and seasonal product cycles.
• Industry P/E of 58.3 reflects moderate valuation across peers.

🧭 Conclusion

• VGUARD is consolidating with neutral technical indicators and weak volume trends.
• Entry zone: ₹355–₹362; exit zone: ₹375–₹390 for short-term swing trades.
• Long-term investors may accumulate on dips, supported by improving fundamentals and sector resilience.