Voltas: Looking Bullish Sentiment Amid Strong Support LevelsTechnical Analysis:
After the announcement of Q3 FY25 financial results on January 30, the stock witnessed a two-day decline. However, on February 1 (Budget Day), the stock found strong support at ₹1135 and began appreciating. The most recent resistance was observed at ₹1430-₹1450. From February 17, over the past 15 days, the stock has been in a continuous uptrend, forming higher highs and higher lows.
On March 3, the latest higher high was taken out, and the same level acted as support on the same day, confirming a strong bullish sentiment. The stock has been appreciating from this level, signaling further upside potential.
The key resistance levels to watch are ₹1440-₹1450 and ₹1560-₹1600. If these hurdles are breached, the stock may surge toward its all-time high.
Despite strong resistances, the overall structure remains bullish. Even in case of a retracement, the recent higher highs and higher lows will act as strong support levels. Traders and investors can place stop losses around ₹1322, with additional support at ₹1204 and ₹1135.
Fundamental Analysis:
Voltas has reported its Q3 FY25 earnings, showcasing strong financial performance. Below are the key financial metrics (values in ₹ crore):
Total Income: ₹3164 in Q3 FY25, ₹2725 in Q2 FY25, ₹2684 in Q3 FY24.
Total Expenses: ₹2941 in Q3 FY25, ₹2487 in Q2 FY25, ₹2624 in Q3 FY24.
Profit Before Tax: ₹223 in Q3 FY25, ₹238 in Q2 FY25, ₹60 in Q3 FY24.
Profit After Tax: ₹131 in Q3 FY25, ₹133 in Q2 FY25, -₹28 in Q3 FY24.
The company's total income has increased 16.1% QoQ from ₹2725 crore in Q2 FY25 and 17.9% YoY from ₹2684 crore in Q3 FY24. The profit before tax, though slightly lower than Q2 FY25, has shown a significant improvement YoY from ₹60 crore to ₹223 crore. Similarly, the profit after tax turned positive compared to Q3 FY24’s loss of ₹28 crore, reinforcing the company's financial strength.
Conclusion:
With a bullish technical pattern and strong financial results, Voltas presents a promising long-term opportunity. If the stock successfully breaks through its resistance zones, it has the potential for significant upside movement. Investors should closely monitor the breakout levels while considering key support levels for risk management.
Disclaimer: This analysis is for educational purposes only. Investors should conduct their own research before making any trading decisions.
