VOLTAS - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.4

📉 VOLTAS is currently in a reversal phase with weak momentum and mixed technical signals. Entry zone: ₹1,360–₹1,382; exit zone: ₹1,420–₹1,460. Watch for RSI recovery and MACD strength to confirm trend reversal.

📊 Technical Overview

• Price Action: Trading at ₹1,382, slightly below 50-DMA (₹1,392) and 200-DMA (₹1,387), indicating short-term weakness and medium-term support test.
• RSI (44.1): Neutral to weak, suggesting lack of strong momentum and potential for further downside.
• MACD (9.24): Bullish crossover, but flattening, indicating fading momentum.
• Bollinger Bands: Price near mid-band, confirming consolidation with downside risk.
• Volume: Slightly above 1-week average, showing moderate participation.
• Support Zones: ₹1,360 (S1), ₹1,320 (S2)
• Resistance Zones: ₹1,420 (R1), ₹1,460 (R2)

✅ Positive

• ROCE (12.7%) and ROE (9.79%) reflect stable operational efficiency.
• EPS of ₹19.4 supports valuation and earnings visibility.
• DII holdings increased (+2.47%), showing strong domestic institutional support.
• MACD crossover suggests early signs of technical recovery.

⚠️ Limitation

• Stock P/E (71.4) is significantly higher than industry average (58.3), indicating overvaluation.
• PEG ratio of 7.60 suggests poor earnings growth relative to valuation.
• Price trading below key moving averages confirms short-term weakness.
• RSI below 50 signals lack of bullish momentum.

📉 Company Negative News

• Quarterly PAT dropped from ₹220 Cr. to ₹203 Cr., a 40% decline.
• FII holdings declined (-0.90%), reflecting reduced foreign investor confidence.

📈 Company Positive News

• MACD and volume trends suggest potential accumulation at lower levels.
• Low debt-to-equity ratio (0.07) ensures financial stability and flexibility.

🏢 Industry

• Consumer durables and cooling solutions sector benefits from seasonal demand and infrastructure growth.
• Industry P/E of 58.3 reflects high growth expectations across peers.

🧭 Conclusion

• VOLTAS is in a reversal phase with weak technical indicators and moderate fundamentals.
• Entry zone: ₹1,360–₹1,382; exit zone: ₹1,420–₹1,460 for short-term bounce trades.
• Long-term investors may accumulate cautiously, supported by brand strength and sector resilience.