NIACL - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.2
| Stock Code | NIACL | Market Cap | 24,605 Cr. | Current Price | 149 ₹ | High / Low | 215 ₹ |
| Stock P/E | 21.0 | Book Value | 0.00 ₹ | Dividend Yield | 1.21 % | ROCE | 3.72 % |
| ROE | 3.54 % | Face Value | 5.00 ₹ | DMA 50 | 156 ₹ | DMA 200 | 175 ₹ |
| Chg in FII Hold | -0.01 % | Chg in DII Hold | -0.03 % | PAT Qtr | 372 Cr. | PAT Prev Qtr | 63.2 Cr. |
| RSI | 47.4 | MACD | -2.43 | Volume | 2,98,168 | Avg Vol 1Wk | 3,88,146 |
| Low price | 135 ₹ | High price | 215 ₹ | PEG Ratio | 0.26 | 52w Index | 17.4 % |
| Qtr Profit Var | 5.13 % | EPS | 7.11 ₹ | Industry PE | 33.8 |
📊 NIACL shows moderate fundamentals with a reasonable P/E compared to industry, attractive dividend yield, and strong quarterly profit growth. However, weak ROCE/ROE, negative momentum indicators, and declining institutional interest limit upside potential. It is a cautious candidate for swing trading.
✅ Optimal Entry Price: Around 140–145 ₹ (near support, close to 52-week low of 135 ₹)
🚪 Exit Strategy: If already holding, consider exiting near 165–170 ₹ (resistance zone close to 50 DMA and below 200 DMA).
Positive
- Quarterly PAT surged to 372 Cr from 63.2 Cr, showing strong improvement.
- Dividend yield of 1.21% adds investor appeal.
- P/E of 21.0 is lower than industry PE (33.8), suggesting relative undervaluation.
- PEG ratio of 0.26 indicates favorable valuation relative to growth.
Limitation
- ROCE (3.72%) and ROE (3.54%) are weak, reflecting low efficiency.
- Book value reported as 0.00 ₹, limiting valuation support.
- Price below both 50 DMA (156 ₹) and 200 DMA (175 ₹), showing bearish trend.
- MACD negative (-2.43) and RSI neutral (47.4) indicate lack of momentum.
- Trading volume below weekly average, suggesting reduced participation.
Company Negative News
- Decline in both FII (-0.01%) and DII (-0.03%) holdings shows reduced institutional confidence.
- Stock has corrected significantly from 52-week high of 215 ₹.
Company Positive News
- Strong quarterly profit growth highlights operational improvement.
- Dividend yield provides steady returns for investors.
Industry
- Industry PE at 33.8 is higher, suggesting NIACL trades at a discount.
- Insurance sector remains in growth phase with rising demand for coverage in India.
Conclusion
⚖️ NIACL offers moderate swing trading potential with entry near 140–145 ₹ and exit near 165–170 ₹. While valuation is attractive and profits have improved, weak efficiency ratios and bearish technicals warrant caution. Short-term gains are possible, but momentum remains limited.