NLCINDIA - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:01 am

Swing Trade Rating: 3.4

📊 NLC India shows moderate potential for swing trading. The RSI at 40 indicates neutral momentum, while the MACD (-3.88) remains negative, suggesting caution. The stock is trading slightly below its 50 DMA (249 ₹) and 200 DMA (245 ₹), reflecting short-term weakness. However, strong quarterly profit growth (+43%) and FII inflows (+0.30%) provide support. Fundamentals are fair with P/E at 17.2 compared to industry P/E of 26.7, though ROCE (9.02%) and ROE (5.61%) are relatively weak.

💡 Optimal Entry Price: Around 230–235 ₹ (near support zone).

🚪 Exit Strategy: If already holding, consider exiting near 249–255 ₹ (DMA resistance) unless momentum strengthens.

✅ Positive

• 📈 Quarterly PAT improved from 368 Cr. to 485 Cr. (+43%)
• 💰 Valuation attractive with P/E of 17.2 vs industry P/E of 26.7
• 📊 EPS at 13.8 ₹ supports earnings stability
• 📈 FII holding increased by 0.30%, showing foreign investor confidence

⚠️ Limitation

• 📉 Current price (239 ₹) is below both 50 DMA and 200 DMA
• 📉 RSI at 40 shows neutral momentum, not strongly bullish
• 📉 MACD at -3.88 signals bearish trend
• 📉 ROCE (9.02%) and ROE (5.61%) are relatively weak

🚨 Company Negative News

• 📉 PEG ratio of 55.6 indicates poor growth prospects relative to valuation
• 📉 Decline in DII holding (-0.39%) shows reduced domestic investor interest

🌟 Company Positive News

• 📈 Strong quarterly profit growth (+43%) boosts investor sentiment
• 💵 Dividend yield of 1.24% provides steady income

🏭 Industry

• 📊 Industry P/E at 26.7, higher than NLC India’s 17.2, showing undervaluation
• ⚡ Power sector benefits from government focus on renewable and energy diversification

📝 Conclusion

⚖️ NLC India offers moderate swing trade potential. Entry near 230–235 ₹ may provide a rebound opportunity, but exit should be considered around 249–255 ₹ unless momentum improves. Strong profit growth and undervaluation are positives, but weak ROCE/ROE and bearish technicals limit short-term upside. Long-term investors may benefit from sectoral growth, while swing traders should remain cautious.

I can also prepare a side-by-side HTML comparison of NHPC vs NLC India swing trade setups so you can evaluate which offers better short-term potential.