NMDC - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 4.0

📉 Optimal Entry Price: ₹72–₹74 (near 200 DMA and RSI support)

📈 Exit Strategy (if holding): ₹81–₹82.5 (near recent high and resistance)

🔷 Positive

• 📊 Low P/E of 9.19: Significantly undervalued compared to industry average of 22.4.
• 📈 ROCE (30.3%) and ROE (24.4%): Indicate strong operational and financial efficiency.
• 💰 Dividend yield of 4.44%: Attractive for short-term income seekers.
• 📉 Debt-to-equity ratio of 0.11: Reflects a healthy balance sheet.
• 📈 FII holding increased by 0.83%: Signals rising foreign investor confidence.

⚠️ Limitation

• 📉 MACD at -0.05: Indicates weak momentum and lack of clear trend.
• 📉 RSI at 44.0: Neutral zone, not yet signaling a strong reversal.
• 📉 Trading below 50 DMA: Reflects short-term technical weakness.
• 📉 PEG ratio of -0.85: Suggests valuation concerns relative to growth expectations.
• 📉 DII holding dropped by 0.10%: Indicates mild domestic institutional caution.

📉 Company Negative News

• 📉 Q2FY26 PAT declined from ₹1,969 Cr. to ₹1,695 Cr., raising concerns over margin pressure.
• 📉 Volume below 1-week average, suggesting reduced short-term trading interest.

📈 Company Positive News

• 📈 NMDC reported a 33.5% YoY profit growth, driven by higher iron ore prices and operational efficiency.
• 📊 Management remains optimistic about demand from infrastructure and steel sectors.

⛏️ Industry

• 🏗️ Operates in the mining and metals sector, which benefits from infrastructure growth and commodity cycles.
• 📉 Industry P/E of 22.4 suggests NMDC trades at a discount, offering value for swing traders.

🧾 Conclusion

• ✅ NMDC is a strong swing trade candidate with solid fundamentals and attractive valuation, though technical indicators suggest caution.
• 📌 Entry near ₹72–₹74 offers a favorable setup if RSI stabilizes and MACD turns positive.
• 🚪 If already holding, consider exiting near ₹81–₹82.5, aligning with resistance and 52-week high.

I can also chart NMDC’s RSI and MACD trends to help you time your entry more precisely.