WELSPUNLIV - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:55 pm

Technical Rating: 3.5

📊 Chart & Trend Analysis:

WELSPUNLIV is trading at ₹136, almost aligned with both its 50 DMA (₹133) and 200 DMA (₹133), suggesting a consolidation phase. RSI at 47.5 indicates neutral momentum, neither overbought nor oversold. MACD at 0.52 shows a mild bullish crossover, hinting at short-term upward bias. Bollinger Bands place the price near the mid-range, reflecting sideways movement. Current volume (10,55,778) is slightly above the 1-week average (9,85,326), showing moderate participation.

🔎 Momentum Signals:

- Short-term momentum: Neutral-to-mild bullish.

- Support levels: ₹130, ₹125, ₹105 (major support).

- Resistance levels: ₹140, ₹150, ₹171 (recent high).

- Optimal entry zone: ₹130–136.

- Optimal exit zone: ₹145–160.

- Current phase: Consolidation with mild bullish undertone.

Positive

• Dividend yield of 1.26% provides investor returns.
• ROCE (13.8%) and ROE (13.2%) show decent capital efficiency.
• EPS of ₹4.27 reflects profitability.
• FII holding increased by 0.22%, signaling foreign investor confidence.

Limitation

• P/E ratio (31.8) is higher than industry average (19.1), suggesting overvaluation.
• PEG ratio of 3.68 indicates growth does not justify valuation.
• Debt-to-equity ratio of 0.41 is relatively high, adding financial risk.
• Stock consolidating without strong breakout signals.

Company Negative News

• DII holding decreased by -0.66%, reflecting reduced domestic institutional confidence.
• Quarterly profit variation (-15.9%) shows earnings weakness despite higher PAT.

Company Positive News

• PAT improved from ₹76 Cr. to ₹148 Cr., showing strong sequential growth.
• FII support increased, balancing sentiment.

Industry

• Industry P/E at 19.1 is lower than WELSPUNLIV’s, suggesting peers trade at more attractive valuations.
• Sector outlook remains stable with moderate demand growth in textiles and lifestyle products.

Conclusion

⚡ WELSPUNLIV is consolidating near its moving averages with mild bullish signals supported by MACD and volume. Entry near ₹130–136 offers favorable risk-reward, while exits around ₹145–160 are optimal. Strong fundamentals and foreign investor support balance out valuation concerns and earnings volatility. Short-term trend is sideways-to-up, with breakout potential if momentum strengthens.