VOLTAS - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.4

📊 Chart & Trend Analysis:

VOLTAS is trading at ₹1,376, almost aligned with its 50 DMA (₹1,370) and 200 DMA (₹1,380), indicating a neutral setup. RSI at 58.9 suggests moderate strength without being overbought. MACD at 3.42 shows a positive crossover, hinting at short-term bullish momentum. Bollinger Bands place the price near the mid-band, reflecting consolidation. Current volume (10,81,011) is higher than the 1-week average (6,48,312), showing increased participation and potential for short-term moves.

🔎 Momentum Signals:

- Short-term momentum: Neutral-to-bullish.

- Support levels: ₹1,350 (near-term), ₹1,320, ₹1,135 (major support).

- Resistance levels: ₹1,400, ₹1,450, and ₹1,500.

- Optimal entry zone: ₹1,350–1,375.

- Optimal exit zone: ₹1,420–1,480.

- Current phase: Consolidation with mild bullish bias.

Positive

• Strong DII support (+2.47%) indicates domestic institutional confidence.
• Dividend yield of 0.50% provides shareholder returns.
• Stock trading near both 50 DMA and 200 DMA shows stability.
• EPS of ₹16.3 reflects consistent profitability.

Limitation

• High P/E ratio (84.3) compared to industry average (49.3) suggests overvaluation.
• Quarterly PAT dropped sharply from ₹203 Cr. to ₹7.33 Cr. (-93.3%).
• PEG ratio of 8.98 indicates growth does not justify valuation.
• ROCE (12.7%) and ROE (9.79%) are modest, showing limited efficiency.

Company Negative News

• FII holding decreased by -0.90%, reflecting reduced foreign investor confidence.
• Sharp decline in quarterly profit raises concerns about earnings sustainability.

Company Positive News

• DII holding increased significantly (+2.47%), balancing sentiment.
• Strong trading volume above average indicates active investor interest.

Industry

• Industry P/E at 49.3 is lower than VOLTAS’s, suggesting peers trade at more attractive valuations.
• Sector outlook remains stable with demand-driven growth in consumer durables.

Conclusion

⚠️ VOLTAS is consolidating near its moving averages with mild bullish signals supported by MACD and volume. Entry near ₹1,350–1,375 offers favorable risk-reward, while exits around ₹1,420–1,480 are optimal. Strong institutional support and stability balance out valuation concerns and weak quarterly earnings. Short-term trend is sideways-to-up, with potential breakout if earnings improve.