As of October 10, 2023, at 11:15 AM, Varun Beverages is making headlines with its share price trading at ₹595.65, marking a modest increase of 0.53% from the previous closing price. The broader market isn’t trailing far behind, with the Sensex currently trading at ₹81,652.55, reflecting a rise of 0.23%. Throughout the trading session, Varun Beverages has experienced fluctuations, achieving a high of ₹601 and a low of ₹587.3, illustrating the stock’s volatility for the day.
Technical Analysis of Varun Beverages
In terms of technical indicators, Varun Beverages is currently positioned above the 5,300-day Simple Moving Average (SMA), while trailing below the 10, 20, 50, and 100-day SMAs. This technical setup suggests that the stock is at a critical juncture, facing resistance at the mentioned SMAs. Investors should monitor these moving averages as potential signals for future price movements.
SMA Values and Their Implications
Understanding the SMA values is crucial as they provide insight into the stock’s potential price directions. The stock’s ability to maintain levels above the 5,300-day SMA could indicate a stabilizing trend, whereas failure to breach the other SMAs can signal caution.
Pivotal Levels for Trading
The classic pivot level analysis on a daily timeframe reveals that Varun Beverages has critical resistance levels at ₹602.47, ₹612.88, and ₹619.57. Conversely, key support levels have been identified at ₹585.37, ₹578.68, and ₹568.27. These levels are pivotal for traders as they can help in making informed decisions around entry and exit points.
Volume and Market Activity
Up until 11 AM today, the trading volume for Varun Beverages on both the NSE and BSE has surged by an impressive 162.59% compared to the previous trading session. This spike in volume signifies that there is renewed interest in the stock, which, when coupled with positive price movement, often indicates a possibility of a sustainable upward trend. Conversely, negative price changes alongside high volume could suggest potential further declines.
Overall Market Sentiment
According to Mint’s technical analysis, the prevailing downtrend in Varun Beverages suggests that a bearish sentiment is being established in the market. Investors should exercise caution and closely monitor upcoming market signals.
Fundamental Backdrop
From a fundamental perspective, Varun Beverages boasts a Return on Equity (ROE) of 34.15%. Its current Price-to-Earnings (P/E) ratio stands at 79.51, while the Price-to-Book (P/B) ratio is at 22.44. These metrics are critical for evaluating the company’s valuation and comparative performance against its peers in the beverage industry.
Forecasted Growth Potential
The median 1-year upside forecast for Varun Beverages is estimated at 13.99%, with a targeted price of ₹679.00. This potential increase in value presents a significant opportunity for investors looking to capitalize on the company’s growth trajectory.
Shareholding Structure
The shareholding structure of Varun Beverages further paints a picture of its market standing, with promoter holding at 62.66%, Mutual Fund (MF) holding at 1.62%, and Foreign Institutional Investor (FII) holding at 25.32%, as per filings for the June quarter. Understanding this structure can give investors insights into the company’s stability and investor confidence.
Changes in Mutual Fund and FII Holdings
The MF holding has shown a slight increase, moving from 1.52% in March to 1.62% in June, indicating growing institutional interest. Conversely, FII holding has decreased from 25.78% in March to 25.32% in June, which might raise concerns regarding foreign investment sentiment towards the stock.
