Vardhman Holdings Limited Stock Forecast

High volatility in Vardhman Holdings Limited stock price on Tuesday which ended trading at ₹3,861.40
(Updated on Jun 25, 2024)

VHL.NS Signals & Forecast

The Vardhman Holdings Limited stock holds buy signals from both short and long-term Moving Averages giving a positive forecast for the stock. Also, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down, there will be some support from the lines at ₹3,546.39 and ₹3,129.31. A breakdown below any of these levels will issue sell signals. Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). Some negative signals were issued as well, and these may have some influence on the near short-term development. A sell signal was issued from a pivot top point on Monday, June 24, 2024, and so far it has fallen -5.08%. Further fall is indicated until a new bottom pivot has been found. Volume fell together with the price during the last trading day and this reduces the overall risk as volume should follow the price movements. The stock had a Golden Star Signal on Monday, May 20, 2024 in the short-term chart.

Golden Star Signal is when the short-term moving average, the long-term moving average, and price line meet in a special combination. This combination is very rare and often followed by long and strong gains for the stock in question.

Support, Risk & Stop-loss for Vardhman Holdings Limited stock

On the downside, the stock finds support just below today's level from accumulated volume at ₹3,508.70 and ₹3,371.00. There is a natural risk involved when a stock is testing a support level, since if this is broken, the stock then may fall to the next support level. In this case, Vardhman Holdings Limited finds support just below today's level at ₹3,508.70. If this is broken, then the next support from accumulated volume will be at ₹3,371.00 and ₹3,166.30.

This stock may move much during the day (volatility) and with a large prediction interval from the Bollinger Band this stock is considered to be "high risk". During the last day, the stock moved ₹644.45 between high and low, or 16.93%. For the last week, the stock has had daily average volatility of 9.46%.

The Vardhman Holdings Limited stock is overbought on RSI14 and lies in the upper part of the trend. Normally this may pose a good selling opportunity for the short-term trader, but some stocks may go long and hard while being overbought. Regardless, the high RSI together with the trend position increases the risk and higher daily movements (volatility) should be expected. A correction down in the nearby future seems very likely and it is of great importance that the stock manages to break the trend before that occurs.

Our recommended stop-loss: ₹3,705.82 (-4.03%) (This stock has high daily movements and this gives high risk. The RSI14 is 79 and this increases the risk substantially. There is a sell signal from a pivot top found 14 days ago.)

Trading Expectations (VHL.NS) For The Upcoming Trading Day Of Wednesday 26th

For the upcoming trading day on Wednesday, 26th we expect Vardhman Holdings Limited to open at ₹4,038.98, and during the day (based on 14 day Average True Range), to move between ₹3,671.40 and ₹4,051.40, which gives a possible trading interval of +/-₹190.00 (+/-4.92%) up or down from last closing price. If Vardhman Holdings Limited takes out the full calculated possible swing range there will be an estimated 9.84% move between the lowest and the highest trading price during the day.

Since the stock is closer to the resistance from accumulated volume at ₹4,067.85 (5.35%) than the support at ₹3,508.70 (9.13%), 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 Vardhman Holdings Limited stock A Buy?

Several short-term signals, along with a general good trend, are positive and we conclude that the current level may hold a buying opportunity as there is a fair chance for Vardhman Holdings Limited stock to perform well in the short-term. We have upgraded our analysis conclusion for this stock since the last evaluation from a Hold/Accumulate to a Buy candidate.

Current score: 1.031 Buy Candidate Upgraded

Predicted Opening Price for Vardhman Holdings Limited of Wednesday, June 26, 2024

The predicted opening price is based on yesterday's movements between high, low, and closing price.