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NATIONALUM - Technical Analysis with Chart Patterns & Indicators

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Rating: 4.2

Last Updated Time : 03 May 26, 11:24 am

Technical Rating: 4.2

Stock Code NATIONALUM Market Cap 73,337 Cr. Current Price 399 ₹ High / Low 445 ₹
Stock P/E 12.6 Book Value 119 ₹ Dividend Yield 2.63 % ROCE 39.2 %
ROE 29.2 % Face Value 5.00 ₹ DMA 50 396 ₹ DMA 200 312 ₹
Chg in FII Hold 2.60 % Chg in DII Hold -1.60 % PAT Qtr 1,718 Cr. PAT Prev Qtr 1,601 Cr.
RSI 44.1 MACD 11.3 Volume 1,80,94,680 Avg Vol 1Wk 1,02,22,488
Low price 149 ₹ High price 445 ₹ PEG Ratio 0.23 Debt to equity 0.00
52w Index 84.5 % Qtr Profit Var -17.4 % EPS 31.7 ₹ Industry PE 20.1

📈 Chart & Trend: NATIONALUM is trading above its 50 DMA (396 ₹) and well above its 200 DMA (312 ₹), confirming strong bullish momentum. RSI at 44.1 indicates neutral-to-oversold recovery zone, while MACD at 11.3 shows a positive crossover supporting upward momentum. Bollinger Bands are moderately tight, suggesting consolidation with potential breakout.

🔎 Momentum Signals: Short-term momentum is positive with price stabilizing near support. Strong support lies at 390–395 ₹, while resistance is seen at 410–420 ₹. Entry zone: 390–395 ₹. Exit zone: 410–420 ₹.

📊 Volume Trends: Current volume (1.80 Cr.) is significantly higher than the 1-week average (1.02 Cr.), indicating strong participation and accumulation interest.

Positive

  • Strong ROCE (39.2%) and ROE (29.2%) highlight excellent operational efficiency.
  • Low P/E (12.6) compared to industry average (20.1) makes valuation attractive.
  • Dividend yield of 2.63% provides steady shareholder returns.
  • Debt-free balance sheet ensures financial stability.
  • FII holdings increased (+2.60%), reflecting strong foreign investor confidence.

Limitation

  • Quarterly profit variation (−17.4%) indicates earnings pressure.
  • DII holdings declined (−1.60%), showing weaker domestic institutional sentiment.
  • Price near 52-week high (84.5% index) may limit immediate upside potential.

Company Negative News

  • Sequential PAT growth slowed (1,718 Cr. vs 1,601 Cr.), raising concerns about sustainability.
  • DII outflows highlight cautious domestic sentiment.

Company Positive News

  • EPS of 31.7 ₹ supports valuation comfort.
  • Strong FII inflows (+2.60%) highlight foreign confidence in fundamentals.

Industry

  • Industry PE at 20.1 highlights NATIONALUM trades at a discount (P/E 12.6).
  • Metals and mining sector benefiting from global demand recovery and infrastructure growth.

Conclusion

⚖️ NATIONALUM is trending upward with strong technical signals supported by price above averages, attractive valuation, and foreign inflows. Entry near 390–395 ₹ offers favorable risk-reward, while resistance lies at 410–420 ₹. Despite earnings pressure and DII outflows, fundamentals remain strong, making it suitable for accumulation with profit booking near resistance levels.

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