WELSPUNLIV - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 4.0
| Stock Code | WELSPUNLIV | Market Cap | 13,356 Cr. | Current Price | 139 ₹ | High / Low | 154 ₹ |
| Stock P/E | 53.0 | Book Value | 42.5 ₹ | Dividend Yield | 1.22 % | ROCE | 6.63 % |
| ROE | 6.31 % | Face Value | 1.00 ₹ | DMA 50 | 130 ₹ | DMA 200 | 130 ₹ |
| Chg in FII Hold | -0.04 % | Chg in DII Hold | 0.75 % | PAT Qtr | 27.3 Cr. | PAT Prev Qtr | -5.33 Cr. |
| RSI | 58.9 | MACD | 4.20 | Volume | 24,66,775 | Avg Vol 1Wk | 26,00,395 |
| Low price | 107 ₹ | High price | 154 ₹ | PEG Ratio | 1.81 | Debt to equity | 0.29 |
| 52w Index | 68.7 % | Qtr Profit Var | -72.2 % | EPS | 2.51 ₹ | Industry PE | 19.7 |
📊 Chart Patterns & Trend: WELSPUNLIV is trading above its 50 DMA (130 ₹) and 200 DMA (130 ₹), confirming bullish momentum. Price action shows an uptrend with consolidation near the 154 ₹ high. Trend bias remains positive but cautious due to valuation stretch.
📈 Moving Averages: Current price (139 ₹) is above both DMA levels, reinforcing bullish undertone. Sustained trading above 135 ₹ strengthens outlook.
⚖️ RSI: At 58.9, RSI is neutral-to-positive, suggesting room for further upside without being overbought.
📉 MACD: Positive at 4.20, 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 (24,66,775) is slightly below 1-week average (26,00,395), showing reduced participation but still healthy activity.
🎯 Entry Zone: 135–140 ₹ (near DMA support).
🚪 Exit Zone: 150–154 ₹ (near resistance and 52-week high).
📌 Momentum Signal: Short-term bullish trend with consolidation near highs. A breakout above 154 ₹ could trigger fresh rally.
Positive
- ✅ ROCE (6.63%) and ROE (6.31%) show profitability, though modest.
- ✅ Dividend yield at 1.22% provides decent income appeal.
- ✅ PAT turned positive at 27.3 Cr. compared to a loss of -5.33 Cr. in the previous quarter.
Limitation
- ⚠️ High P/E (53.0) compared to industry PE (19.7) suggests steep overvaluation.
- ⚠️ EPS at 2.51 ₹ is relatively weak compared to valuation.
- ⚠️ Debt-to-equity at 0.29 is manageable but higher than peers.
Company Negative News
- 📉 Quarterly profit variation (-72.2%) shows earnings pressure despite PAT recovery.
- 📉 FII holdings decreased by 0.04%, showing reduced foreign investor confidence.
Company Positive News
- 📈 DII holdings increased by 0.75%, reflecting strong domestic institutional support.
- 📈 Stock has delivered strong 52-week performance (68.7%).
Industry
- 🏭 Industry PE at 19.7 indicates sector is moderately valued compared to WELSPUNLIV’s premium valuation.
- 🏭 Textile and lifestyle sector outlook remains steady, supported by demand recovery and export opportunities.
Conclusion
🔎 WELSPUNLIV is in a bullish trend with consolidation near highs. Entry near 135–140 ₹ offers favorable risk-reward, while resistance at 150–154 ₹ should be watched for exits. A breakout above 154 ₹ could trigger fresh upside momentum. Investors should monitor volume strength and institutional flows for confirmation of sustained rally.