WELCORP - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 4.3

📈 WELCORP is currently in a trending phase with strong bullish momentum and volume breakout. Entry zone: ₹920–₹962; exit zone: ₹980–₹995. Watch for RSI cooling and MACD continuation to confirm sustained upside.

📊 Technical Overview

• Price Action: Trading at ₹962, well above both 50-DMA (₹872) and 200-DMA (₹835), confirming strong uptrend.
• RSI (73.9): In overbought zone, indicating strong momentum but caution for short-term pullback.
• MACD (13.5): Bullish crossover with rising histogram, confirming upward momentum.
• Bollinger Bands: Price near upper band, suggesting strength but possible resistance.
• Volume: Nearly 3x the 1-week average, indicating strong buying interest and breakout conviction.
• Support Zones: ₹920 (S1), ₹872 (S2)
• Resistance Zones: ₹980 (R1), ₹995 (R2)

✅ Positive

• Strong ROCE (18.2%) and ROE (13.5%) reflect solid operational efficiency.
• EPS of ₹47.2 supports valuation and earnings visibility.
• Quarterly PAT increased from ₹214 Cr. to ₹231 Cr., a 114% YoY jump.
• Price action above key moving averages confirms bullish sentiment.

⚠️ Limitation

• Stock P/E (33.7) is above industry average (24.0), indicating premium valuation.
• PEG ratio of 13.4 suggests overvaluation relative to growth.
• RSI in overbought zone, caution for short-term traders.
• FII holdings declined (-0.34%), showing reduced foreign investor confidence.

📉 Company Negative News

• Minor decline in FII holdings may reflect cautious sentiment despite strong performance.

📈 Company Positive News

• Strong quarterly earnings and volume breakout signal renewed investor interest.
• DII holdings increased (+0.17%), showing domestic institutional support.

🏢 Industry

• Steel and pipe manufacturing sector benefits from infrastructure growth and export demand.
• Industry P/E of 24.0 reflects moderate valuation across peers.

🧭 Conclusion

• WELCORP is trending upward with strong technical momentum and bullish indicators.
• Entry zone: ₹920–₹962; exit zone: ₹980–₹995 for short-term swing trades.
• Long-term investors may accumulate on dips, supported by strong fundamentals and sector tailwinds.