NAM-INDIA - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 4.0
| Stock Code | NAM-INDIA | Market Cap | 55,389 Cr. | Current Price | 870 ₹ | High / Low | 987 ₹ |
| Stock P/E | 39.3 | Book Value | 65.4 ₹ | Dividend Yield | 2.07 % | ROCE | 41.6 % |
| ROE | 32.0 % | Face Value | 10.0 ₹ | DMA 50 | 864 ₹ | DMA 200 | 811 ₹ |
| Chg in FII Hold | 0.25 % | Chg in DII Hold | 0.88 % | PAT Qtr | 391 Cr. | PAT Prev Qtr | 338 Cr. |
| RSI | 51.8 | MACD | -5.31 | Volume | 9,29,640 | Avg Vol 1Wk | 15,10,984 |
| Low price | 456 ₹ | High price | 987 ₹ | PEG Ratio | 1.89 | Debt to equity | 0.02 |
| 52w Index | 77.9 % | Qtr Profit Var | 32.2 % | EPS | 22.2 ₹ | Industry PE | 25.3 |
📊 Chart & Trend Analysis:
NAM-INDIA is trading at ₹870, slightly above its 50 DMA (₹864) and comfortably above its 200 DMA (₹811), indicating medium-term bullish strength. RSI at 51.8 suggests neutral-to-positive momentum, not overbought. MACD at -5.31 shows mild bearish crossover, signaling short-term weakness despite overall strength. Bollinger Bands place price near the mid-range, reflecting consolidation. Current volume (9.3 lakh) is lower than the 1-week average (15.1 lakh), showing reduced participation and cautious sentiment.
📈 Momentum Signals:
- RSI neutral, leaning bullish.
- MACD mildly negative, showing short-term weakness.
- Price above both 50 & 200 DMA supports medium-term bullish trend.
- Lower volume indicates cautious investor activity.
🎯 Optimal Entry & Exit Zones:
- Entry Zone: ₹860 – ₹875 (near 50 DMA support).
- Exit Zone: ₹980 – ₹990 (resistance near recent highs).
- Stop Loss: ₹840 (below 200 DMA support).
📌 Trend Status: The stock is consolidating with bullish bias, supported by moving averages but facing short-term weakness from MACD and volume decline.
Positive
- Strong ROCE (41.6%) and ROE (32.0%) highlight excellent capital efficiency.
- Debt-to-equity ratio of 0.02 indicates near debt-free status.
- Dividend yield of 2.07% provides steady income for investors.
- Quarterly PAT improved to ₹391 Cr. from ₹338 Cr., showing earnings growth (+32.2%).
- FII holding increased (+0.25%) and DII holding increased (+0.88%), reflecting institutional confidence.
Limitation
- High P/E (39.3) compared to industry average (25.3) suggests overvaluation.
- PEG ratio of 1.89 indicates growth is relatively expensive.
- Trading volume below average shows weak investor conviction.
Company Negative News
- MACD mildly negative, signaling short-term weakness.
- High valuation may limit upside in the near term.
Company Positive News
- Quarterly profit growth of 32.2% signals strong operational performance.
- Institutional support increased from both FII and DII investors.
- Dividend yield remains attractive compared to peers.
Industry
- Industry P/E at 25.3 is lower than NAM-INDIA’s P/E (39.3), suggesting relative overvaluation.
- Asset management and financial services sector remains resilient, supported by rising retail participation and long-term investment flows.
Conclusion
⚖️ NAM-INDIA is consolidating with bullish bias, trading above key moving averages but showing mild weakness from MACD and volume decline. Fundamentals remain strong with high ROE/ROCE, profit growth, and institutional support, though valuations are stretched. Short-term traders may consider entry near ₹860–₹875 with exits around ₹980–₹990, while long-term investors should monitor valuation risks before fresh accumulation.