NLCINDIA - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 3.6

📊 Swing Trade Analysis: NLC India Ltd.

NLC India shows moderate potential for swing trading, with a bullish technical setup and reasonable valuation. However, declining earnings and weak volume suggest a cautious approach.

✅ Strengths

Technical Indicators

MACD (6.55): Bullish crossover, indicating upward momentum.

RSI (63.0): Positive, with room before overbought territory.

Price above 50 DMA (₹240) and 200 DMA (₹236): Confirms bullish trend.

52w Index (63.4%): Strong recovery from lows.

Valuation & Fundamentals

P/E (20.0) vs Industry PE (31.2): Fairly valued.

EPS (₹12.8) and Book Value (₹126): Solid earnings base.

Debt-to-Equity (0.43): Moderate leverage.

Dividend Yield (1.17%): Adds passive income.

⚠️ Weaknesses

Quarterly PAT Decline (-25.8%): Indicates earnings contraction.

ROCE (9.02%) and ROE (5.61%): Below average efficiency.

PEG Ratio (64.7): Extremely high — suggests poor growth relative to valuation.

Volume (15L) significantly below 1-week average (34L): Weak trader interest.

DII Holding Decline (-0.38%): Slight domestic pullback.

🎯 Optimal Entry Price

Entry Zone: ₹240–₹245

A pullback near the 50 DMA offers a better risk-reward setup.

🚪 Exit Strategy (If Already Holding)

Target Exit Price: ₹275–₹285

Near resistance zone and below 52-week high.

Stop Loss: ₹235

Just below 200 DMA and recent support.

Time Horizon: 1–2 weeks, depending on volume and RSI behavior.

This setup suits swing traders who are comfortable with moderate momentum and can manage short-term volatility. Let me know if you'd like help tracking this trade or scanning stronger setups.

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