NMDC - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 4.1

📈 Swing Trade Analysis: NMDC Ltd.

NMDC presents a strong swing trade setup, backed by solid fundamentals, attractive valuation, and bullish technical indicators. While volume is slightly below average and growth metrics are mixed, the overall setup favors short-term momentum traders.

✅ Strengths

Valuation & Profitability

P/E (10.1) vs Industry PE (21.4): Undervalued.

ROCE (30.3%) and ROE (24.4%): Excellent capital efficiency.

EPS (₹7.59) and Book Value (₹33.6): Strong earnings and asset base.

Dividend Yield (4.30%): Attractive for short-term holders.

Debt-to-Equity (0.14): Low leverage.

Technical Momentum

MACD (1.43): Bullish crossover.

RSI (66.8): Positive momentum, nearing overbought.

Price above 50 DMA (₹72.2) and 200 DMA (₹70.5): Confirms bullish trend.

FII Holding Increase (+0.49%): Positive institutional sentiment.

⚠️ Risks

PEG Ratio (-0.93): Indicates poor growth relative to valuation.

Quarterly Profit Var (-0.78%): Flat earnings growth.

Volume slightly below average: May limit short-term breakout potential.

DII Holding Decline (-0.64%): Slight domestic pullback.

🎯 Optimal Entry Price

Entry Zone: ₹72–₹74

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

🚪 Exit Strategy (If Already Holding)

Target Exit Price: ₹81–₹83

Near recent high and psychological resistance.

Stop Loss: ₹70

Just below 200 DMA and support zone.

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

This setup suits traders looking for a value-backed momentum play with limited downside. Let me know if you'd like help tracking this trade or scanning similar setups.

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