VGUARD - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.4
| Stock Code | VGUARD | Market Cap | 13,329 Cr. | Current Price | 305 ₹ | High / Low | 413 ₹ |
| Stock P/E | 48.5 | Book Value | 50.9 ₹ | Dividend Yield | 0.49 % | ROCE | 17.0 % |
| ROE | 13.0 % | Face Value | 1.00 ₹ | DMA 50 | 323 ₹ | DMA 200 | 339 ₹ |
| Chg in FII Hold | -0.05 % | Chg in DII Hold | 0.07 % | PAT Qtr | 95.4 Cr. | PAT Prev Qtr | 55.7 Cr. |
| RSI | 32.1 | MACD | -5.00 | Volume | 7,81,968 | Avg Vol 1Wk | 5,47,582 |
| Low price | 290 ₹ | High price | 413 ₹ | PEG Ratio | 3.18 | Debt to equity | 0.03 |
| 52w Index | 12.2 % | Qtr Profit Var | 22.2 % | EPS | 5.94 ₹ | Industry PE | 45.4 |
📊 Chart Patterns & Trend: VGUARD is trading below both its 50 DMA (323 ₹) and 200 DMA (339 ₹), showing weakness. Price action suggests consolidation with bearish bias between 290 ₹ (support) and 320–330 ₹ (resistance). Trend is leaning towards reversal from highs.
📈 Moving Averages: Current price (305 ₹) is under both DMA levels, signaling short-term pressure. Sustained trading below 320 ₹ keeps bearish outlook intact.
⚖️ RSI: At 32.1, RSI is near oversold territory, indicating potential for a technical rebound if support holds.
📉 MACD: Negative at -5.00, confirming bearish undertone. Weak momentum persists.
📊 Bollinger Bands: Price is near the lower band, suggesting oversold conditions and possible bounce from 290–300 ₹ support zone.
📦 Volume Trends: Current volume (7,81,968) is higher than 1-week average (5,47,582), showing selling pressure but also accumulation interest at lower levels.
🎯 Entry Zone: 290–305 ₹ (near support).
🚪 Exit Zone: 320–340 ₹ (near resistance and DMA cluster).
📌 Momentum Signal: Short-term consolidation with bearish bias. A rebound is possible if RSI-driven buying emerges, but trend remains weak unless price breaks above 340 ₹.
Positive
- ✅ ROCE (17.0%) and ROE (13.0%) show decent efficiency.
- ✅ Debt-to-equity at 0.03 indicates strong balance sheet.
- ✅ PAT improved from 55.7 Cr. to 95.4 Cr. quarter-on-quarter.
Limitation
- ⚠️ High P/E (48.5) compared to industry PE (45.4) suggests overvaluation.
- ⚠️ PEG ratio (3.18) indicates expensive growth prospects.
- ⚠️ Dividend yield (0.49%) is low, limiting income appeal.
Company Negative News
- 📉 Stock corrected sharply from 52-week high (413 ₹) to near 305 ₹.
- 📉 FII holdings decreased by 0.05%, showing reduced foreign investor confidence.
Company Positive News
- 📈 PAT rose significantly quarter-on-quarter, showing earnings momentum.
- 📈 DII holdings increased by 0.07%, reflecting domestic institutional support.
Industry
- 🏭 Industry PE at 45.4 indicates sector is moderately valued.
- 🏭 VGUARD trades at a premium, suggesting investor expectations of growth despite weak momentum.
Conclusion
🔎 VGUARD is in a consolidation phase with bearish bias. Entry near 290–305 ₹ offers limited downside risk, while resistance at 320–340 ₹ should be watched for exits. RSI near oversold levels hints at possible rebound, but sustained weakness below DMA levels keeps trend fragile. Investors should wait for confirmation above 340 ₹ before expecting trend reversal.