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WELSPUNLIV - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.6
| Stock Code | WELSPUNLIV | Market Cap | 11,000 Cr. | Current Price | 115 ₹ | High / Low | 155 ₹ |
| Stock P/E | 34.8 | Book Value | 42.2 ₹ | Dividend Yield | 1.49 % | ROCE | 13.8 % |
| ROE | 13.2 % | Face Value | 1.00 ₹ | DMA 50 | 126 ₹ | DMA 200 | 131 ₹ |
| Chg in FII Hold | 0.06 % | Chg in DII Hold | 1.85 % | PAT Qtr | -5.33 Cr. | PAT Prev Qtr | 148 Cr. |
| RSI | 39.5 | MACD | -5.60 | Volume | 32,11,548 | Avg Vol 1Wk | 22,48,503 |
| Low price | 105 ₹ | High price | 155 ₹ | PEG Ratio | 4.02 | Debt to equity | 0.41 |
| 52w Index | 19.9 % | Qtr Profit Var | -106 % | EPS | 3.25 ₹ | Industry PE | 20.5 |
📊 Technical Analysis
- Chart Patterns: Price is below both 50 DMA (₹126) and 200 DMA (₹131), showing weakness.
- RSI: At 39.5, near oversold territory, suggesting possible support but still bearish.
- MACD: Negative (-5.60), confirming bearish momentum.
- Bollinger Bands: Price near lower band, indicating selling pressure.
- Volume Trends: Current volume (32.1L) above 1-week average (22.4L), showing heavy selling activity.
📈 Momentum & Signals
- Short-term Momentum: Weak, bearish bias.
- Support Zone: ₹105 – ₹115 (recent low and current price).
- Resistance Zone: ₹126 – ₹131 (DMA levels).
- Optimal Entry: Around ₹105–₹115 if support holds.
- Optimal Exit: Near ₹126–₹131 unless breakout occurs.
- Trend Status: Reversing downward after failing to sustain higher levels.
✅ Positive
- ROCE (13.8%) and ROE (13.2%) show moderate efficiency.
- Dividend yield of 1.49%, attractive for income investors.
- EPS at ₹3.25, providing a stable earnings base.
⚠️ Limitation
- High P/E (34.8) compared to industry average (20.5).
- PEG ratio of 4.02 indicates overvaluation.
- Debt-to-equity at 0.41, relatively high leverage.
📉 Company Negative News
- Quarterly PAT dropped sharply from ₹148 Cr. to -₹5.33 Cr.
- Quarterly profit variation (-106%) indicates severe margin pressure.
📈 Company Positive News
- FII holding increased slightly (+0.06%), showing foreign investor confidence.
- DII holding increased significantly (+1.85%), strong domestic institutional support.
🏭 Industry
- Industry P/E at 20.5, much lower than company’s 34.8, suggesting sector is cheaper.
- Sector growth moderate with 19.9% index gain in 52 weeks.
🔎 Conclusion
WELSPUNLIV is showing bearish technical signals, trading below both 50 DMA and 200 DMA with weak RSI and negative MACD. Despite moderate ROCE, ROE, and attractive dividend yield, fundamentals are under pressure due to sharp profit decline and high leverage. Short-term traders should watch ₹105–₹115 as support and ₹126–₹131 as resistance. The stock is currently reversing downward, and sustained movement above ₹131 would be needed to signal recovery.