NATCOPHARM - IntraDay Trade Analysis with Live Signals

Last Updated Time : 20 Dec 25, 07:03 am

IntraDay Trade Rating: 3.8

📊 Analysis: Natco Pharma shows moderate intraday potential. Current price (₹918) is hovering around DMA 200 (₹919) and above DMA 50 (₹874), suggesting a neutral-to-bullish bias. RSI at 56.1 indicates balanced momentum, while MACD at 18.1 supports mild upward movement. Volume (4,41,446) is lower than the 1-week average (8,31,314), showing reduced participation. Despite strong fundamentals (ROCE 31.8%, ROE 27.5%), quarterly profit variation (-24.2%) raises caution for intraday traders.

💹 Optimal Buy Price: ₹910–₹920 (near support zone around DMA 200).

🎯 Profit-Taking Exit Levels: ₹940 (first resistance), ₹960 (second resistance).

🛡️ Stop-Loss / Loss Protection: ₹900 (below DMA 200 support).

⏱️ Intraday Exit Guidance: If already holding, consider exiting if price fails to sustain above ₹910 with RSI dropping below 50 or MACD flattening. Exit near ₹940–₹960 if momentum remains strong with volume confirmation.

Positive

• ✅ Strong ROCE (31.8%) and ROE (27.5%) indicate efficient capital use.
• ✅ EPS of ₹84.8 supports earnings visibility.
• ✅ Very low debt-to-equity (0.03) ensures financial stability.
• ✅ PEG ratio of 0.07 suggests undervaluation relative to growth.
• ✅ Price trading above DMA 50 supports short-term bullish bias.

Limitation

• ⚠️ Quarterly profit variation (-24.2%) indicates declining profitability momentum.
• ⚠️ Current price near DMA 200 shows indecision in trend direction.
• ⚠️ Volume lower than 1-week average reduces intraday conviction.
• ⚠️ FII holding decreased (-1.43%), showing reduced foreign investor confidence.

Company Negative News

• 📉 No major negative news reported, but profit decline raises caution.

Company Positive News

• 📈 PAT growth from ₹464 Cr. to ₹501 Cr. sequentially shows operational improvement despite YoY decline.
• 📈 Stable fundamentals with strong ROCE and ROE support long-term confidence.

Industry

• 🌐 Pharma sector remains resilient with demand for generics and specialty drugs.
• 🌐 Industry P/E at 30.6 is much higher than Natco’s P/E (10.8), suggesting undervaluation.

Conclusion

🔎 Natco Pharma is a moderate candidate for intraday trading today. Buy near ₹910–₹920 with profit targets at ₹940–₹960 and stop-loss at ₹900. Momentum indicators favor short-term gains, but weak volume and profit decline limit upside. Suitable for cautious intraday traders with strict stop-loss adherence.

Would you like me to extend this into a peer benchmarking overlay comparing Natco Pharma with Sun Pharma, Dr. Reddy’s, and Cipla to evaluate relative intraday strength across the pharma sector?