NIACL - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:02 am

Swing Trade Rating: 2.9

📊 NIACL is currently trading at ₹156, below both its 50 DMA (₹175) and 200 DMA (₹184), reflecting weak technical momentum. RSI at 34.8 suggests the stock is near oversold territory, which could allow a short-term rebound. The optimal entry price would be near ₹150–₹155, close to support levels. If already holding, consider exiting around ₹175–₹180, where resistance is expected.

✅ Positive

• 📈 Reasonable P/E ratio (22.4) compared to industry average (42.8), suggesting fair valuation
• 💰 Dividend yield of 1.17% provides modest shareholder return
• 📉 Debt-to-equity ratio at 0.00, showing no leverage risk
• 📊 Book value (₹169) slightly above current price, offering valuation support

⚠️ Limitation

• 📉 Current price below both 50 DMA and 200 DMA, confirming bearish trend
• 📊 Very low ROCE (3.72%) and ROE (3.54%), indicating weak efficiency
• 📉 RSI near oversold but MACD negative (-4.59), showing weak momentum
• 📉 52-week index at 24%, reflecting poor performance compared to peers

🚨 Company Negative News

• 📉 PAT dropped sharply from ₹391 Cr. to ₹63.2 Cr.
• 📉 Quarterly profit variation at -10.9%, showing declining earnings trend
• 📉 Trading volume lower than weekly average, indicating reduced investor interest

🌟 Company Positive News

• 📊 EPS at ₹7.00, maintaining profitability despite weak margins
• 📈 Stable institutional holdings (FII and DII unchanged), showing no major sell-off pressure

🏭 Industry

• 📊 Industry P/E at 42.8 is much higher, suggesting sector peers are valued more optimistically
• 🌐 Insurance sector remains strategically important, but NIACL lags behind industry benchmarks

📌 Conclusion

NIACL is a weak candidate for swing trading due to poor technicals and declining profits. While oversold RSI levels may trigger a short-term bounce, upside is limited. Entry is best near ₹150–₹155, while exit should be considered around ₹175–₹180. Traders should remain cautious and monitor earnings trends closely.

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