VTL - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.8

📊 Chart & Trend Analysis:

VTL is trading at ₹451, slightly above its 50 DMA (₹437) and 200 DMA (₹445), suggesting a neutral-to-bullish bias. RSI at 58 indicates moderate strength without being overbought. MACD at 3.24 shows a positive crossover, hinting at short-term bullish momentum. Bollinger Bands suggest price is near the mid-to-upper band, reflecting steady upward movement. Current volume (1,16,227) is slightly below the 1-week average (1,24,704), showing moderate participation.

🔎 Momentum Signals:

- Short-term momentum: Mildly bullish.

- Support levels: ₹445 (DMA 200), ₹437 (DMA 50), ₹420.

- Resistance levels: ₹465, ₹480, and major resistance at ₹500.

- Optimal entry zone: ₹440–450.

- Optimal exit zone: ₹470–495.

- Current phase: Trending with mild bullish bias, but facing resistance near ₹465–480.

Positive

• Reasonable P/E ratio (15.8) compared to industry average (19.1), indicating fair valuation.
• Dividend yield of 1.09% provides income support for investors.
• Stock trading above both 50 DMA and 200 DMA confirms technical strength.
• Strong EPS of ₹28.5 reflects earnings stability.

Limitation

• ROCE (10.7%) and ROE (8.86%) are modest, showing limited efficiency.
• Quarterly PAT declined from ₹202 Cr. to ₹189 Cr. (-13.8% variation).
• FII holding decreased by -0.28% and DII holding by -0.15%, showing reduced institutional confidence.
• PEG ratio of -0.75 indicates weak growth prospects relative to valuation.

Company Negative News

• Decline in quarterly profit (-13.8%) raises concerns about earnings momentum.
• Institutional investors (both FII and DII) reduced holdings, signaling cautious sentiment.

Company Positive News

• Dividend yield of 1.09% adds shareholder value.
• Stock maintains strength above key moving averages, showing resilience despite earnings dip.

Industry

• Industry P/E at 19.1 is slightly higher than VTL’s, suggesting peers trade at richer valuations.
• Sector outlook remains stable, with moderate demand growth supporting long-term fundamentals.

Conclusion

⚡ VTL is trending with a mild bullish bias, supported by moving averages and positive MACD. Entry near ₹440–450 offers favorable risk-reward, while exits around ₹470–495 are optimal. Despite fair valuation and dividend support, declining profits and reduced institutional interest temper enthusiasm. Short-term trend is upward but faces resistance near ₹465–480.