NIACL - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Swing Trade Rating: 3.5

📊 Analysis Summary

NIACL (New India Assurance) presents a moderately attractive swing trade setup, with signs of potential short-term recovery. While the fundamentals are weak, technical indicators suggest a possible bounce from oversold levels.

✅ Positive Indicators

RSI: 31.9

Near oversold territory — could trigger a technical rebound.

MACD: -2.07

Bearish but flattening — watch for a crossover.

Volume Surge

Current volume (6.15L) is significantly above weekly average (2.96L), indicating renewed interest.

PEG Ratio: 0.38

Suggests undervaluation relative to growth.

Zero Debt (D/E: 0.00)

Financially stable, reducing downside risk.

Quarterly Profit Growth: +14.6%

PAT increased from ₹349 Cr. to ₹356 Cr., showing steady improvement.

⚠️ Cautionary Signals

ROE & ROCE: ~3.6%

Weak return metrics — not ideal for long-term holding.

Trading Below DMA 50 & 200 (₹183 & ₹186)

Indicates bearish trend. Needs confirmation of reversal.

P/E: 27.6 vs Industry PE: 37.2

Slightly undervalued, but not compelling given low profitability.

52W Index: 22.9%

Mild performance over the year — not a strong momentum stock.

🎯 Optimal Entry Price

Entry Zone: ₹168–₹172

Near recent support and RSI oversold zone. Look for bullish candlestick patterns or MACD crossover.

🚪 Exit Strategy (If Already Holding)

Exit Target: ₹185–₹190

Near DMA resistance levels. Consider booking profits here.

Stop Loss: ₹164

Below recent support. Protects against further downside.

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