NMDC - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 4.1

📊 NMDC shows strong potential for swing trading. The RSI at 53.3 indicates balanced momentum, while the MACD (0.52) is positive, suggesting bullish sentiment. The stock is trading slightly above both its 50 DMA (75.4 ₹) and 200 DMA (72.9 ₹), reflecting technical strength. Fundamentals are attractive with a low P/E of 9.54 compared to industry P/E of 20.0, high ROCE (30.3%), and ROE (24.4%). Dividend yield of 4.32% adds further appeal. Despite a slight decline in quarterly PAT, overall profit variation (+33.5%) and strong 52-week performance (84.9%) support upside.

💡 Optimal Entry Price: Around 74–76 ₹ (near DMA support zone).

🚪 Exit Strategy: If already holding, consider exiting near 79–80 ₹ (recent high resistance) unless momentum continues strongly.

✅ Positive

• 📈 Strong ROCE of 30.3% and ROE of 24.4%
• 💰 Attractive valuation with P/E of 9.54 vs industry P/E of 20.0
• 💵 High dividend yield of 4.32%
• 📊 EPS of 8.08 ₹ supports earnings stability
• 📈 FII holding increased by 0.83%, showing foreign investor confidence

⚠️ Limitation

• 📉 Quarterly PAT declined from 1,969 Cr. to 1,695 Cr.
• 📉 PEG ratio of -0.88 suggests limited growth prospects
• 📉 DII holding declined by -0.10%
• 📉 Current volume (93.5 lakh) is below average weekly volume (136.9 lakh), showing reduced activity

🚨 Company Negative News

• 📉 Quarterly PAT decline indicates short-term earnings pressure
• 📉 PEG ratio negative, reflecting weak growth outlook

🌟 Company Positive News

• 📈 Quarterly profit variation improved by +33.5% year-on-year
• 💵 Strong dividend yield supports investor confidence
• 📈 52-week index performance at 84.9% shows robust price appreciation

🏭 Industry

• 📊 Industry P/E at 20.0, significantly higher than NMDC’s 9.54, showing undervaluation
• ⚒️ Mining and metals sector benefits from infrastructure demand and commodity price cycles

📝 Conclusion

⚖️ NMDC is a strong candidate for swing trading. Entry near 74–76 ₹ offers a favorable risk-reward setup, while exit near 79–80 ₹ captures short-term resistance. Attractive fundamentals, high dividend yield, and strong technicals make it appealing, though traders should monitor profit trends and volume activity. Long-term investors may also find value given sectoral tailwinds and undervaluation.

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