WELCORP - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.1
| Stock Code | WELCORP | Market Cap | 19,439 Cr. | Current Price | 737 ₹ | High / Low | 995 ₹ |
| Stock P/E | 25.7 | Book Value | 180 ₹ | Dividend Yield | 0.68 % | ROCE | 18.2 % |
| ROE | 13.5 % | Face Value | 5.00 ₹ | DMA 50 | 790 ₹ | DMA 200 | 823 ₹ |
| Chg in FII Hold | -0.34 % | Chg in DII Hold | -0.34 % | PAT Qtr | 161 Cr. | PAT Prev Qtr | 231 Cr. |
| RSI | 42.0 | MACD | -18.5 | Volume | 2,71,801 | Avg Vol 1Wk | 6,79,031 |
| Low price | 664 ₹ | High price | 995 ₹ | PEG Ratio | 10.2 | Debt to equity | 0.21 |
| 52w Index | 21.9 % | Qtr Profit Var | 3.28 % | EPS | 47.4 ₹ | Industry PE | 18.7 |
📊 Chart Patterns & Trend: WELCORP is trading below both its 50 DMA (790 ₹) and 200 DMA (823 ₹), indicating bearish pressure. Price action suggests consolidation between 720–790 ₹, with strong support at 720 ₹ and resistance near 790–820 ₹. Trendlines show sideways movement with bearish undertone.
📈 Moving Averages: Current price (737 ₹) is below both 50 DMA and 200 DMA, signaling weakness. A sustained move above 790–820 ₹ is required for reversal confirmation.
📉 RSI: At 42.0, RSI is in neutral-to-weak territory, suggesting limited momentum and possible consolidation.
📉 MACD: Negative at -18.5, confirming bearish momentum in the short term.
📊 Bollinger Bands: Price is near the lower band, indicating oversold conditions and potential support around 720–730 ₹.
📊 Volume Trends: Current volume (2,71,801) is significantly below the 1-week average (6,79,031), showing weak participation and lack of strong buying interest.
🎯 Entry Zone: 720–740 ₹ (near support, risk-managed entry).
🎯 Exit Zone: 790–820 ₹ (resistance zone, profit booking advisable).
📌 Momentum Signal: Weak short-term momentum, consolidation phase with bearish undertone. A breakout above 820 ₹ is needed to confirm reversal toward 880–900 ₹.
Positive
- Strong ROCE (18.2%) and ROE (13.5%) highlight efficient capital use.
- EPS of 47.4 ₹ reflects solid earnings base.
- Dividend yield of 0.68% provides investor returns.
Limitation
- Stock trading below both 50 DMA and 200 DMA shows technical weakness.
- High PEG ratio (10.2) indicates expensive growth prospects.
- Quarterly PAT declined from 231 Cr. to 161 Cr.
- Weak trading volumes reduce momentum strength.
Company Negative News
- Decline in FII holdings (-0.34%) and DII holdings (-0.34%) shows reduced institutional confidence.
- Sequential PAT decline highlights margin pressure.
Company Positive News
- Quarterly profit variation (+3.28%) shows resilience despite decline.
- Dividend yield and EPS provide investor confidence.
Industry
- Industry P/E at 18.7 indicates sector is moderately valued compared to the company’s higher valuation.
- 52-week index return of 21.9% shows steady sector performance.
Conclusion
⚖️ WELCORP is consolidating near support with weak momentum and bearish undertones. Entry near 720–740 ₹ offers limited risk, while exits should be considered around 790–820 ₹ unless strong reversal occurs. Fundamentally steady but technically cautious in the near term, requiring close monitoring.