VOLTAS - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.5
| Stock Code | VOLTAS | Market Cap | 41,941 Cr. | Current Price | 1,268 ₹ | High / Low | 1,582 ₹ |
| Stock P/E | 119 | Book Value | 241 ₹ | Dividend Yield | 0.55 % | ROCE | 5.83 % |
| ROE | 4.39 % | Face Value | 1.00 ₹ | DMA 50 | 1,360 ₹ | DMA 200 | 1,386 ₹ |
| Chg in FII Hold | 0.03 % | Chg in DII Hold | 0.54 % | PAT Qtr | 82.2 Cr. | PAT Prev Qtr | 59.7 Cr. |
| RSI | 40.8 | MACD | -34.8 | Volume | 8,57,113 | Avg Vol 1Wk | 10,97,455 |
| Low price | 1,187 ₹ | High price | 1,582 ₹ | PEG Ratio | -10.3 | Debt to equity | 0.10 |
| 52w Index | 20.5 % | Qtr Profit Var | -62.7 % | EPS | 10.3 ₹ | Industry PE | 45.4 |
📊 Chart Patterns & Trend: VOLTAS is trading below both its 50 DMA (1,360 ₹) and 200 DMA (1,386 ₹), showing weakness. Price action suggests consolidation with bearish bias between 1,187 ₹ support and 1,350 ₹ resistance. Trend is leaning towards reversal from highs.
📈 Moving Averages: Current price (1,268 ₹) is under both DMA levels, signaling short-term pressure. Sustained trading below 1,350 ₹ keeps bearish outlook intact.
⚖️ RSI: At 40.8, RSI is near oversold territory, indicating potential for a technical rebound if support holds.
📉 MACD: Strongly negative at -34.8, confirming bearish undertone and weak momentum.
📊 Bollinger Bands: Price is near the lower band, suggesting oversold conditions and possible bounce from 1,200–1,250 ₹ support zone.
📦 Volume Trends: Current volume (8,57,113) is lower than 1-week average (10,97,455), showing reduced participation and weak conviction in price moves.
🎯 Entry Zone: 1,200–1,250 ₹ (near support).
🚪 Exit Zone: 1,350–1,380 ₹ (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 1,360–1,380 ₹.
Positive
- ✅ Strong brand presence and market leadership in consumer appliances.
- ✅ PAT improved from 59.7 Cr. to 82.2 Cr. quarter-on-quarter.
- ✅ Dividend yield at 0.55% provides modest income appeal.
Limitation
- ⚠️ Very high P/E (119) compared to industry PE (45.4) suggests steep overvaluation.
- ⚠️ ROCE (5.83%) and ROE (4.39%) are weak, indicating poor efficiency.
- ⚠️ PEG ratio (-10.3) highlights poor growth alignment.
Company Negative News
- 📉 Stock corrected sharply from 52-week high (1,582 ₹) to current levels near 1,268 ₹.
- 📉 Quarterly profit variation (-62.7%) shows earnings pressure.
Company Positive News
- 📈 DII holdings increased by 0.54%, reflecting domestic institutional support.
- 📈 FII holdings increased slightly by 0.03%, showing foreign investor confidence.
Industry
- 🏭 Industry PE at 45.4 indicates sector is moderately valued compared to VOLTAS’s premium valuation.
- 🏭 Consumer appliance sector outlook remains steady, but margins are under pressure due to competition.
Conclusion
🔎 VOLTAS is in a consolidation phase with bearish bias. Entry near 1,200–1,250 ₹ offers limited downside risk, while resistance at 1,350–1,380 ₹ 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 1,380 ₹ before expecting a trend reversal.