Varun Beverages Limited Stock Forecast
Weaker technical forecast for Varun Beverages Limited as stock downgraded to Sell Candidate.
(Updated on May 31, 2024)
The Varun Beverages Limited stock price fell by -0.98% on the last day (Friday, 31st May 2024) from ₹1,439.60 to ₹1,425.55. During the last trading day the stock fluctuated 3.94% from a day low at ₹1,390.20 to a day high of ₹1,445.00. The price has fallen in 7 of the last 10 days and is down by -4.54% for this period. Volume has increased on the last day by 125 thousand shares but on falling prices. This may be an early warning and the risk will be increased slightly over the next couple of days. In total, 238 thousand shares were bought and sold for approximately ₹339.59 million.
The stock has broken the weak rising short-term trend down. This signalizes a slower rate of rising, but may also be an early warning about a possible trend shift. Due to the trend being broken there will now be resistance at the bottom line of the trend at ₹1,432.53. A reaction back to this level may hold a second chance to get out before further falls.
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VBL.BO Signals & Forecast
There are few to no technical positive signals at the moment. The Varun Beverages Limited stock holds sell signals from both short and long-term Moving Averages giving a more negative forecast for the stock. On corrections up, there will be some resistance from the lines at ₹1,466.06 and ₹1,461.89. A break-up above any of these levels will issue buy signals. A sell signal was issued from a pivot top point on Thursday, May 02, 2024, and so far it has fallen -5.95%. Further fall is indicated until a new bottom pivot has been found. Furthermore, there is currently a sell signal from the 3 month Moving Average Convergence Divergence (MACD). Volume rose on falling prices yesterday. This may be an early warning and the stock should be followed more closely.
A sell signal from a double top formation was found on Thursday, May 02, 2024 and based on theory for this formation the price should fall by -5.47% to ₹1,347.55 within 16 trading days since signal was issued (Monday, June 03, 2024).
Support, Risk & Stop-loss for Varun Beverages Limited stock
Varun Beverages Limited finds support from accumulated volume at ₹1,386.45 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.
In general the stock tends to have very controlled movements and with good liquidity the risk is considered very low in this stock. During the last day, the stock moved ₹54.80 between high and low, or 3.94%. For the last week the stock has had daily average volatility of 2.62%.
Our recommended stop-loss: We hold a negative evaluation for this stock. No stop-loss is set.
Trading Expectations (VBL.BO) For The Upcoming Trading Day Of Monday 3rd
For the upcoming trading day on Monday, 3rd we expect Varun Beverages Limited to open at ₹1,420.25, and during the day (based on 14 day Average True Range), to move between ₹1,385.33 and ₹1,465.77, which gives a possible trading interval of +/-₹40.22 (+/-2.82%) up or down from last closing price. If Varun Beverages Limited takes out the full calculated possible swing range there will be an estimated 5.64% move between the lowest and the highest trading price during the day.
Since the stock is closer to the resistance from accumulated volume at ₹1,463.30 (2.65%) than the support at ₹1,386.45 (2.74%), our systems don't find the trading risk/reward intra-day attractive and any bets should be held until the stock is closer to the support level.
Is Varun Beverages Limited stock A Buy?
The Varun Beverages Limited stock holds several negative signals and despite the positive trend, we believe Varun Beverages Limited will perform weakly in the next couple of days or weeks. Therefore, we hold a negative evaluation of this stock. Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this stock since the last evaluation from a Buy to a Sell candidate.
Current score: -2.381 Sell Candidate Downgraded
Predicted Opening Price for Varun Beverages Limited of Monday, June 3, 2024
| Fair opening price June 3, 2024 | Current price |
|---|---|
| ₹1,420.25 ( 0.372%) | ₹1,425.55 |
The predicted opening price is based on yesterday's movements between high, low, and closing price.
Trading levels for VBL.BO
Fibonacci Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 1,475.05 | 3.47 % | |
| R2 | 1,454.12 | 2.00 % | ||
| R1 | 1,441.18 | 1.10 % | ||
| Current price: | 1,425.55 | |||
| Support | S1 | 1,399.32 | -1.84 % | |
| S2 | 1,386.38 | -2.75 % | ||
| S3 | 1,365.45 | -4.22 % |
Accumulated Volume Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 1,490.20 | 4.54 % | |
| R2 | 1,477.80 | 3.67 % | ||
| R1 | 1,463.30 | 2.65 % | ||
| Current price | 1,425.55 | |||
| Support | S1 | 1,386.45 | -2.74% | |
| S2 | 1,381.40 | -3.10% | ||
| S3 | 1,379.70 | -3.22% |
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