WELCORP - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 4.3
| Stock Code | WELCORP | Market Cap | 33,572 Cr. | Current Price | 1,272 ₹ | High / Low | 1,410 ₹ |
| Stock P/E | 40.0 | Book Value | 195 ₹ | Dividend Yield | 0.39 % | ROCE | 22.7 % |
| ROE | 17.8 % | Face Value | 5.00 ₹ | DMA 50 | 1,117 ₹ | DMA 200 | 925 ₹ |
| Chg in FII Hold | -0.22 % | Chg in DII Hold | 0.94 % | PAT Qtr | 228 Cr. | PAT Prev Qtr | 161 Cr. |
| RSI | 58.8 | MACD | 69.2 | Volume | 26,20,100 | Avg Vol 1Wk | 12,02,935 |
| Low price | 710 ₹ | High price | 1,410 ₹ | PEG Ratio | 0.66 | Debt to equity | 0.08 |
| 52w Index | 80.3 % | Qtr Profit Var | 51.7 % | EPS | 38.4 ₹ | Industry PE | 22.5 |
📊 Chart Patterns & Trend: WELCORP is trading well above both its 50 DMA (1,117 ₹) and 200 DMA (925 ₹), confirming strong bullish momentum. Price action shows an uptrend with consolidation near the 1,410 ₹ high. Trend bias remains positive.
📈 Moving Averages: Current price (1,272 ₹) is comfortably above both DMA levels, reinforcing bullish momentum. Sustained trading above 1,250 ₹ strengthens outlook.
⚖️ RSI: At 58.8, RSI is neutral-to-positive, suggesting room for further upside without being overbought.
📉 MACD: Strongly positive at 69.2, confirming bullish undertone and signaling continuation of upward momentum.
📊 Bollinger Bands: Price is near the upper band, indicating strong buying interest. Minor pullbacks may occur before further breakout.
📦 Volume Trends: Current volume (26,20,100) is significantly higher than 1-week average (12,02,935), showing strong participation and accumulation interest.
🎯 Entry Zone: 1,230–1,250 ₹ (near 50 DMA support).
🚪 Exit Zone: 1,380–1,410 ₹ (near resistance and 52-week high).
📌 Momentum Signal: Short-term bullish trend with consolidation near highs. A breakout above 1,410 ₹ could trigger fresh rally.
Positive
- ✅ Strong ROCE (22.7%) and ROE (17.8%) reflect efficient capital use.
- ✅ EPS at 38.4 ₹ supports valuation strength.
- ✅ PAT improved from 161 Cr. to 228 Cr. quarter-on-quarter.
- ✅ PEG ratio at 0.66 indicates attractive growth prospects.
Limitation
- ⚠️ High P/E (40.0) compared to industry PE (22.5) suggests premium valuation.
- ⚠️ Dividend yield at 0.39% is modest, limiting income appeal.
- ⚠️ Stock corrected from 52-week high (1,410 ₹), showing resistance pressure.
Company Negative News
- 📉 FII holdings decreased by 0.22%, showing reduced foreign investor confidence.
- 📉 Valuation stretched compared to industry peers.
Company Positive News
- 📈 DII holdings increased by 0.94%, reflecting strong domestic institutional support.
- 📈 Quarterly profit variation at 51.7% highlights strong earnings momentum.
- 📈 Stock has delivered strong 52-week performance (80.3%).
Industry
- 🏭 Industry PE at 22.5 indicates sector is moderately valued compared to WELCORP’s premium valuation.
- 🏭 Steel and infrastructure sector outlook remains strong, driven by demand expansion and government projects.
Conclusion
🔎 WELCORP is in a bullish trend with consolidation near highs. Entry near 1,230–1,250 ₹ offers favorable risk-reward, while resistance at 1,380–1,410 ₹ should be watched for exits. A breakout above 1,410 ₹ could trigger fresh upside momentum. Investors should monitor volume strength and institutional flows for confirmation of sustained rally.