WELSPUNLIV - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.2
| Stock Code | WELSPUNLIV | Market Cap | 11,845 Cr. | Current Price | 123 ₹ | High / Low | 155 ₹ |
| Stock P/E | 28.9 | Book Value | 42.2 ₹ | Dividend Yield | 1.38 % | ROCE | 13.8 % |
| ROE | 13.2 % | Face Value | 1.00 ₹ | DMA 50 | 128 ₹ | DMA 200 | 131 ₹ |
| Chg in FII Hold | 0.06 % | Chg in DII Hold | 1.85 % | PAT Qtr | 148 Cr. | PAT Prev Qtr | 76.0 Cr. |
| RSI | 46.5 | MACD | -2.16 | Volume | 24,02,087 | Avg Vol 1Wk | 34,79,276 |
| Low price | 105 ₹ | High price | 155 ₹ | PEG Ratio | 3.35 | Debt to equity | 0.41 |
| 52w Index | 37.1 % | Qtr Profit Var | -15.9 % | EPS | 4.27 ₹ | Industry PE | 17.6 |
📊 Chart Patterns & Trend: WELSPUNLIV is trading below both its 50 DMA (128 ₹) and 200 DMA (131 ₹), indicating short-term weakness. Price action suggests consolidation between 120–131 ₹, with strong support at 120–123 ₹ and resistance near 131–138 ₹. Trendlines show sideways movement with bearish undertone.
📈 Moving Averages: Current price (123 ₹) is below both 50 DMA and 200 DMA, signaling weakness. A sustained move above 131–138 ₹ is required for reversal confirmation.
📉 RSI: At 46.5, RSI is neutral-to-weak, suggesting limited momentum and possible consolidation.
📉 MACD: Negative at -2.16, confirming bearish momentum in the short term.
📊 Bollinger Bands: Price is near the lower band, indicating oversold conditions and potential support around 120–123 ₹.
📊 Volume Trends: Current volume (24,02,087) is below the 1-week average (34,79,276), showing weak participation and lack of strong buying interest.
🎯 Entry Zone: 120–123 ₹ (near support, risk-managed entry).
🎯 Exit Zone: 131–138 ₹ (resistance zone, profit booking advisable).
📌 Momentum Signal: Weak short-term momentum, consolidation phase with bearish undertone. A breakout above 138 ₹ is needed to confirm reversal toward 145–155 ₹.
Positive
- ROCE (13.8%) and ROE (13.2%) show moderate efficiency.
- Dividend yield of 1.38% provides investor returns.
- FII (+0.06%) and DII (+1.85%) holdings increased, reflecting investor confidence.
- EPS of 4.27 ₹ supports earnings visibility.
Limitation
- Stock trading below both 50 DMA and 200 DMA shows technical weakness.
- High PEG ratio (3.35) indicates expensive growth prospects.
- Debt-to-equity ratio of 0.41 shows moderate leverage risk.
- Quarterly PAT variation (-15.9%) highlights margin pressure.
Company Negative News
- Sequential PAT decline from 148 Cr. to 76 Cr. shows earnings pressure.
Company Positive News
- Institutional support increased with higher FII and DII holdings.
- Dividend yield provides steady investor returns.
Industry
- Industry P/E at 17.6 indicates sector is cheaper compared to the company’s higher valuation (28.9).
- 52-week index return of 37.1% shows healthy sector performance.
Conclusion
⚖️ WELSPUNLIV is consolidating near support with weak momentum and bearish undertones. Entry near 120–123 ₹ offers limited risk, while exits should be considered around 131–138 ₹ unless strong reversal occurs. Fundamentally steady but technically cautious in the near term, requiring close monitoring.