WELSPUNLIV - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

Technical Rating: 3.6

📊 WELSPUNLIV is currently in a consolidation phase with mild bullish momentum and mixed signals. Entry zone: ₹124–₹130; exit zone: ₹140–₹150. Watch for RSI crossing 60 and MACD expansion to confirm breakout strength.

📊 Technical Overview

• Price Action: Trading at ₹130, above 50-DMA (₹124) but slightly below 200-DMA (₹132), indicating short-term strength but medium-term resistance.
• RSI (59.3): Near bullish threshold, suggesting building momentum.
• MACD (2.91): Bullish crossover, confirming upward momentum.
• Bollinger Bands: Price near mid-band, indicating consolidation with breakout potential.
• Volume: Below 1-week average, showing reduced participation and limited conviction.
• Support Zones: ₹124 (S1), ₹115 (S2)
• Resistance Zones: ₹140 (R1), ₹150 (R2)

✅ Positive

• ROCE (13.8%) and ROE (13.2%) reflect solid operational efficiency.
• EPS of ₹4.50 supports valuation and earnings visibility.
• Price trading above 50-DMA and MACD crossover suggest short-term bullish setup.
• FII holdings increased (+0.22%), showing foreign investor interest.

⚠️ Limitation

• Stock P/E (28.9) is above industry average (22.6), indicating premium valuation.
• PEG ratio of 3.34 suggests overvaluation relative to growth.
• Volume trends are weak, limiting breakout strength.
• Price still below 200-DMA, indicating medium-term resistance.

📉 Company Negative News

• Quarterly PAT dropped from ₹98.2 Cr. to ₹76.0 Cr., a 47.6% decline.
• DII holdings declined (-0.66%), reflecting cautious domestic sentiment.

📈 Company Positive News

• MACD and RSI trends suggest early signs of technical recovery.
• Low debt-to-equity ratio (0.43) ensures financial stability and flexibility.

🏢 Industry

• Home textiles and lifestyle sector benefits from rising urban demand and export opportunities.
• Industry P/E of 22.6 reflects moderate valuation across peers.

🧭 Conclusion

• WELSPUNLIV is consolidating with mild bullish indicators and improving technical setup.
• Entry zone: ₹124–₹130; exit zone: ₹140–₹150 for short-term swing trades.
• Long-term investors may accumulate cautiously, supported by stable fundamentals and sector resilience.