NIACL - Swing Trade Analysis with AI Signals

Last Updated Time : 19 Sept 25, 2:15 pm

Swing Trade Rating: 3.9

📊 NIACL Swing Trade Analysis

NIACL shows moderate potential for a swing trade setup, supported by improving earnings and technical stability, though limited momentum and weak capital efficiency temper the upside.

✅ Positive Indicators

Quarterly Profit Growth: PAT rose from ₹347 Cr. to ₹391 Cr. — an 80.2% improvement, signaling earnings momentum.

Volume Surge: Current volume (11.9L) is double the 1-week average (5.8L), indicating rising interest.

MACD: 0.89 — positive crossover, suggesting bullish momentum.

RSI: 55.4 — neutral zone, room for upside without being overbought.

PEG Ratio: 0.35 — undervalued relative to growth.

Zero Debt — strong financial foundation.

⚠️ Cautionary Signals

Low ROCE (3.72%) and ROE (3.54%) — weak capital efficiency.

P/E of 27.8 vs Industry PE of 39.9 — slightly undervalued, but not compelling.

Price near resistance: Current price ₹196 is above both DMA 50 (₹190) and DMA 200 (₹188), but far from 52W high of ₹245 — upside may be limited without strong momentum.

🎯 Trade Strategy

Optimal Entry Price: ₹188–₹192

Enter near DMA 200 for a low-risk setup with support.

Exit Plan (If Holding)

Target Exit: ₹215–₹225

Realistic swing target below resistance zone.

Stop Loss: ₹182

Below DMA 200 to protect downside.

NIACL is a decent swing candidate for short-term traders looking for a low-risk entry and moderate upside. Let me know if you'd like to track this setup or compare it with other insurance stocks.

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