VMM - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.4
| Stock Code | VMM | Market Cap | 58,188 Cr. | Current Price | 124 ₹ | High / Low | 158 ₹ |
| Stock P/E | 97.5 | Book Value | 14.2 ₹ | Dividend Yield | 0.00 % | ROCE | 10.1 % |
| ROE | 7.62 % | Face Value | 10.0 ₹ | DMA 50 | 131 ₹ | DMA 200 | 132 ₹ |
| Chg in FII Hold | 0.12 % | Chg in DII Hold | 0.05 % | PAT Qtr | 182 Cr. | PAT Prev Qtr | 131 Cr. |
| RSI | 41.9 | MACD | -2.84 | Volume | 52,27,058 | Avg Vol 1Wk | 1,53,57,222 |
| Low price | 96.0 ₹ | High price | 158 ₹ | PEG Ratio | 3.01 | Debt to equity | 0.02 |
| 52w Index | 46.1 % | Qtr Profit Var | 40.1 % | EPS | 1.28 ₹ | Industry PE | 39.1 |
📊 Chart Patterns & Trend: VMM is trading below both its 50 DMA (131 ₹) and 200 DMA (132 ₹), indicating short-term weakness. Price action suggests consolidation between 120–132 ₹, with strong support at 120 ₹ and resistance near 132–138 ₹. Trendlines show sideways movement with bearish undertone.
📈 Moving Averages: Current price (124 ₹) is below both 50 DMA and 200 DMA, signaling bearish momentum. A sustained move above 132 ₹ is required for reversal confirmation.
📉 RSI: At 41.9, RSI is in neutral-to-weak territory, suggesting limited momentum and possible consolidation.
📉 MACD: Negative at -2.84, confirming bearish momentum in the short term.
📊 Bollinger Bands: Price is near the lower band, indicating oversold conditions and potential support around 120–124 ₹.
📊 Volume Trends: Current volume (52,27,058) is significantly below the 1-week average (1,53,57,222), showing weak participation and lack of strong buying interest.
🎯 Entry Zone: 120–124 ₹ (near support, risk-managed entry).
🎯 Exit Zone: 132–138 ₹ (resistance zone, profit booking advisable).
📌 Momentum Signal: Weak short-term momentum, consolidation phase with bearish undertone. A breakout above 132–138 ₹ is needed to confirm reversal.
Positive
- Quarterly PAT growth from 131 Cr. to 182 Cr. (+40.1%) shows strong earnings momentum.
- Low debt-to-equity ratio (0.02) ensures financial stability.
- FII (+0.12%) and DII (+0.05%) holdings increased, reflecting investor confidence.
- 52-week index return of 46.1% highlights strong sector momentum.
Limitation
- High P/E (97.5) compared to industry average (39.1) suggests overvaluation.
- Weak ROCE (10.1%) and ROE (7.62%) highlight poor efficiency.
- PEG ratio of 3.01 indicates expensive growth prospects.
- Dividend yield is 0%, limiting investor returns.
Company Negative News
- Stock trading below both 50 DMA and 200 DMA shows technical weakness.
Company Positive News
- Quarterly profit growth highlights operational improvement.
- EPS of 1.28 ₹ reflects earnings expansion.
Industry
- Industry P/E at 39.1 indicates sector is moderately valued compared to the company’s higher valuation.
- Strong sector momentum with 52-week index return of 46.1% supports broader growth outlook.
Conclusion
⚖️ VMM is consolidating near support with weak momentum and bearish undertones. Entry near 120–124 ₹ offers limited risk, while exits should be considered around 132–138 ₹ unless strong reversal occurs. Fundamentally overvalued but showing earnings growth, making it a cautious technical play in the near term.