VOLTAS - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.0
| Stock Code | VOLTAS | Market Cap | 42,825 Cr. | Current Price | 1,295 ₹ | High / Low | 1,531 ₹ |
| Stock P/E | 87.2 | Book Value | 243 ₹ | Dividend Yield | 0.54 % | ROCE | 12.7 % |
| ROE | 9.79 % | Face Value | 1.00 ₹ | DMA 50 | 1,377 ₹ | DMA 200 | 1,382 ₹ |
| Chg in FII Hold | -1.85 % | Chg in DII Hold | 2.12 % | PAT Qtr | 59.7 Cr. | PAT Prev Qtr | 7.33 Cr. |
| RSI | 37.2 | MACD | -22.0 | Volume | 2,65,175 | Avg Vol 1Wk | 8,34,357 |
| Low price | 1,172 ₹ | High price | 1,531 ₹ | PEG Ratio | 9.29 | Debt to equity | 0.17 |
| 52w Index | 34.2 % | Qtr Profit Var | -44.9 % | EPS | 14.5 ₹ | Industry PE | 48.5 |
📊 Chart Patterns & Trend: VOLTAS is trading below both its 50 DMA (1,377 ₹) and 200 DMA (1,382 ₹), indicating bearish pressure. Price action suggests consolidation between 1,250–1,380 ₹, with strong support at 1,250–1,270 ₹ and resistance near 1,380–1,420 ₹. Trendlines show a downward bias.
📈 Moving Averages: Current price (1,295 ₹) is below both 50 DMA and 200 DMA, signaling weakness. A sustained move above 1,380 ₹ is required for reversal confirmation.
📉 RSI: At 37.2, RSI is close to oversold territory, suggesting limited downside but weak momentum.
📉 MACD: Negative at -22.0, confirming bearish momentum in the short term.
📊 Bollinger Bands: Price is near the lower band, indicating oversold conditions and potential short-term support around 1,250–1,270 ₹.
📊 Volume Trends: Current volume (2,65,175) is significantly below the 1-week average (8,34,357), showing weak participation and lack of strong buying interest.
🎯 Entry Zone: 1,250–1,270 ₹ (near support, risk-managed entry).
🎯 Exit Zone: 1,380–1,420 ₹ (resistance zone, profit booking advisable).
📌 Momentum Signal: Weak short-term momentum, consolidation phase with bearish undertone. A breakout above 1,380 ₹ is needed to confirm reversal.
Positive
- Quarterly PAT improved significantly (59.7 Cr. vs 7.33 Cr. previous quarter).
- DII holdings increased (+2.12%), reflecting strong domestic investor confidence.
- EPS of 14.5 ₹ supports earnings visibility.
Limitation
- High P/E (87.2) compared to industry average (48.5) suggests overvaluation.
- PEG ratio of 9.29 indicates expensive growth prospects.
- Weak ROCE (12.7%) and ROE (9.79%) compared to peers.
- Low trading volumes reduce momentum strength.
Company Negative News
- Decline in FII holdings (-1.85%) shows reduced foreign investor confidence.
- Quarterly profit variation (-44.9%) highlights margin pressure despite PAT improvement.
Company Positive News
- Strong rebound in PAT compared to previous quarter.
- DII support increased, showing strong domestic institutional interest.
Industry
- Industry P/E at 48.5 indicates sector is moderately valued compared to the company’s higher valuation.
- 52-week index return of 34.2% shows healthy sector performance.
Conclusion
⚖️ VOLTAS is consolidating near support with weak momentum and bearish undertones. Entry near 1,250–1,270 ₹ offers limited risk, while exits should be considered around 1,380–1,420 ₹ unless strong reversal occurs. Fundamentally overvalued but showing earnings recovery, making it a cautious technical play in the near term.